ZetaChain Suspends Transfers After DefiLlama Reports $300K Loss
ZetaChain has suspended cross-chain transactions on its mainnet after detecting an attack on its GatewayEVM contract.
Summary
- ZetaChain paused cross-chain transactions upon discovering an attack on its GatewayEVM smart contract.
- The team clarified that only internal wallets were affected, and no user funds were at risk.
- DefiLlama noted a potential loss of $300,000 as ZetaChain works on a detailed post-mortem analysis.
The Layer 1 network indicated that the suspension was a safety measure while the team continues its investigation. GatewayEVM acts as a vital gateway for cross-chain interactions among EVM-compatible networks and applications on ZetaChain, enabling connectivity across related chains.
ZetaChain confirmed that the attack exclusively targeted internal team wallets, and they have now sealed the vulnerability to avert further losses.
“As a precaution, cross-chain transactions are currently suspended on ZetaChain,” the team announced. “The investigation remains ongoing, and to date, no user funds have been compromised by this attack.”
DefiLlama reports $300,000 in losses
DefiLlama indicated that the attack resulted in estimated losses of around $300,000. ZetaChain has not confirmed this exact amount but stated it plans to publish a comprehensive post-mortem report.
ZetaChain’s official status page confirmed that cross-chain transactions were halted as of 9:00 p.m. ET on Monday, approximately nine hours after the initial detection of the attack.
Continued concerns in DeFi security
ZetaChain launched its mainnet in early 2024, focusing on blockchain interoperability. The project aims to function as a universal blockchain linking networks like Bitcoin, Ethereum, and Polygon.
This event is part of a troubling trend of security incidents in DeFi. The LayerZero-powered Kelp DAO bridge exploit drained $292 million, leading to significant debt on Aave. Following that incident, DefiLlama has recorded at least 10 attacks on different DeFi projects.
