Zilliqa CEO Steps Down as X-Bridge Remains Suspended
Zilliqa CEO Alexander Zahnd has stepped down at his own request while the blockchain project investigates security incidents involving X-Bridge. The bridge remains suspended, and the board is managing the company until a permanent successor is appointed. No replacement has been named.
Zilliqa said the incidents affected X-Bridge and some ZRC2 proxy contracts used by liquidity pools. It named zUSDT, SEED, kUSD and Zoge as affected tokens, but said native ZIL and the Zilliqa EVM network were not affected. The company has not disclosed total losses and urged users to avoid the bridge and affected pools while it replaces operational keys and works with exchanges and law enforcement.
PlunderSwap separately estimated that about $800,000 was stolen from X-Bridge and said several bridged assets had lost their backing. ZIL traded at about $0.001999 on Oct. 28, roughly unchanged over 24 hours. The suspension follows an earlier X-Bridge exploit in February 2025 and adds to leadership and security concerns at Zilliqa.
Bearish
The news is bearish for Zilliqa-related assets in the short term. X-Bridge remains suspended after security incidents, the project has not disclosed total losses, and CEO Alexander Zahnd has left without a named successor. These factors can undermine confidence, reduce activity in affected pools and bridged tokens, and increase selling or withdrawal pressure. PlunderSwap’s estimate of about $800,000 stolen and its statement that several bridged assets lost their backing add to uncertainty.
The immediate effect may be concentrated in ZIL, affected tokens and Zilliqa ecosystem projects rather than the wider crypto market. ZIL was roughly flat over 24 hours at the reported time, suggesting the leadership news had not produced a clear broad price move then. Zilliqa also said native ZIL and its EVM network were unaffected, which could limit direct technical contagion, though traders may still apply a risk discount until the investigation clarifies the scope and recovery prospects.
Past bridge exploits have often triggered sharp declines in exposed assets, liquidity outflows and heightened scrutiny of security controls. In the longer term, sentiment will depend on a transparent accounting of losses, successful remediation, independent security findings, a safe reopening of X-Bridge and permanent leadership. If those steps restore confidence, pressure could ease; continued delays or further incidents would prolong downside risks. This is a market-risk assessment, not a prediction of a specific price move.