Zilliqa Faces Ledger Security Crisis as Upbit and Bithumb Issue Warnings

Zilliqa (ZIL) announced it is facing a significant security crisis due to a critical vulnerability discovered in its Ledger hardware wallet application, with active exploitation observed on July 19th. The vulnerability in the Ledger application makes private keys used for ZIL transactions vulnerable to recovery attacks. Following this development, South Korea-based cryptocurrency exchanges Upbit and Bithumb classified ZIL as a warning asset and suspended deposits and withdrawals, citing user security concerns.

Zilliqa Ledger Vulnerability Affects Private Keys

Zilliqa stated in a statement from its X account that the attack stemmed from a security vulnerability in the Ledger application. The team stated that a critical vulnerability in the Ledger application makes the private keys used for ZIL transactions vulnerable to recovery attacks. The problem affects all versions released from 2019 to 2026, and active exploitation was observed on July 19th. Following this active vulnerability, the team stated that ZIL transactions were suspended, but EVM transactions were not affected by this security flaw.

Upbit and Bithumb Suspend ZIL Deposits and Withdrawals

Following these developments, South Korea-based cryptocurrency exchanges Upbit and Bithumb classified ZIL as a warning asset in their trading markets. The exchanges announced they are suspending deposits and withdrawals for ZIL, citing user security concerns. Upbit and Bithumb made similar statements, warning that trading support for ZIL could be completely terminated if the security issue is not resolved within a reasonable timeframe or if adequate measures to protect investors are not taken.

Zilliqa Team Issues Security Recommendations

This development has led to a review of security measures within the Zilliqa ecosystem. Users who conduct ZIL transactions via Ledger are advised to change their addresses and discontinue using their compromised wallets. Zilliqa previously announced that ZIL held in a cold wallet had been stolen in a security incident at one of its partner exchanges.

FAQ

What vulnerability was discovered in Zilliqa's Ledger application?

A critical vulnerability in the Ledger application makes the private keys used for ZIL transactions vulnerable to recovery attacks. The problem affects all versions released from 2019 to 2026, with active exploitation observed on July 19th.

Why did Upbit and Bithumb suspend ZIL deposits and withdrawals?

Upbit and Bithumb classified ZIL as a warning asset and suspended deposits and withdrawals citing user security concerns following the discovery of the Ledger vulnerability. Both exchanges warned that trading support for ZIL could be completely terminated if the security issue is not resolved within a reasonable timeframe or if adequate measures to protect investors are not taken.