ZetaChain Suspends Cross-Chain Activities
ZetaChain has put a temporary hold on cross-chain activities on its mainnet following the detection of a security breach targeting its GatewayEVM contract. This network, which operates on Layer 1, took this action as a preventive measure while investigations are ongoing. The GatewayEVM is crucial for facilitating interactions between EVM-compatible networks and applications, acting as an essential conduit for cross-chain functions, especially for ZetaChain’s ecosystem.
Details of the Security Breach
The company indicated that the attack was limited to internal team wallets and reassured users that there was no impact on personal funds. In a statement, the ZetaChain team confirmed:
“In light of the situation, we have opted to pause all cross-chain transactions on ZetaChain. Our investigation is in progress and to date, no user funds have been affected by this breach.”
Impact and Industry Context
Data from DefiLlama suggests that the attack resulted in an estimated $300,000 in losses, although ZetaChain has not officially verified this figure. The company has plans to release a detailed report on the incident afterward.
As of 9 p.m. ET on Monday, the suspension of cross-chain transactions remained in effect, nearly nine hours after the team first became aware of the attack. Since its launch in early 2024, ZetaChain has positioned itself as a leading entity in blockchain interoperability, offering connections across major networks such as Bitcoin, Ethereum, and Polygon.
This incident is part of a troubling trend, following other significant security breaches in decentralized finance (DeFi) recently, including a $292 million loss related to the Kelp DAO bridge exploit, leaving a domino effect on projects like Aave. With recent data indicating at least ten security incidents targeting DeFi, the industry remains on heightened alert for potential vulnerabilities.
