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ZetaChain Suspends Transfers After DefiLlama Reports $300K Loss

Bradley Bosch

ZetaChain has suspended cross-chain transactions on its mainnet after uncovering an attack on its GatewayEVM contract.

Summary

  • ZetaChain has paused cross-chain transactions due to an attack discovered on its GatewayEVM smart contract.
  • The team reassured that only internal wallets were impacted, ensuring user funds remain secure.
  • DefiLlama estimates potential losses at $300,000 as ZetaChain undertakes a thorough post-incident review.

The Layer 1 network mentioned that this suspension is a precautionary step while ongoing investigations take place. GatewayEVM is a vital bridge facilitating cross-chain interactions between EVM-compatible networks and applications on ZetaChain, enhancing connectivity between linked chains.

ZetaChain affirmed that the attack exclusively targeted internal team wallets and that they have addressed the vulnerability to avert further losses.

“To be cautious, cross-chain transactions are temporarily halted on ZetaChain,” the team stated. “The investigation is ongoing, and so far, no user funds have been compromised due to this incident.”

DefiLlama estimates losses at $300,000

DefiLlama reported that the attack led to losses approximated at $300,000. While ZetaChain has not yet confirmed this figure, they plan to issue a detailed post-mortem report soon.

ZetaChain’s official status page noted that cross-chain transactions were ceased at 9:00 p.m. ET on Monday, about nine hours after the attack was first detected.

Ongoing concerns regarding DeFi security

ZetaChain launched its mainnet in early 2024 with a focus on blockchain interoperability, aiming to act as a universal blockchain connecting networks such as Bitcoin, Ethereum, and Polygon.

This event contributes to a troubling trend of security breaches in the DeFi space. The LayerZero-powered Kelp DAO bridge exploit drained $292 million, resulting in significant debt on Aave. Since that event, DefiLlama has reported at least ten attacks targeting multiple DeFi projects.