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ZetaChain Suspends Transfers After DefiLlama Reports $300K Loss

Bradley Bosch

ZetaChain has suspended cross-chain transactions on its mainnet following the detection of an attack on its GatewayEVM contract.

Summary

  • ZetaChain halted cross-chain transactions after uncovering an assault on its GatewayEVM smart contract.
  • The team clarified that only internal wallets were impacted, ensuring the safety of user funds.
  • DefiLlama has estimated a potential loss of $300,000 as ZetaChain undertakes a comprehensive post-mortem analysis.

The Layer 1 network announced that this suspension is a precautionary action while investigations are underway. GatewayEVM is a vital bridge facilitating cross-chain interactions between EVM-compatible networks and applications on ZetaChain, enhancing connectivity among affiliated chains.

ZetaChain confirmed that the attack targeted solely internal team wallets, and they have addressed the vulnerability to avert further losses.

“As a precaution, cross-chain transactions are currently suspended on ZetaChain,” the team stated. “The investigation is ongoing, and to date, there have been no compromises of user funds stemming from this attack.”

DefiLlama estimates $300,000 in losses

DefiLlama has reported that the attack led to estimated losses of approximately $300,000. While ZetaChain has yet to confirm this specific figure, they intend to publish a detailed post-mortem report.

ZetaChain’s official status page confirmed that cross-chain transactions were suspended at 9:00 p.m. ET on Monday, about nine hours after the initial detection of the attack.

Continued concerns regarding DeFi security

ZetaChain launched its mainnet in early 2024, focusing on blockchain interoperability. This initiative aims to function as a universal blockchain connecting networks like Bitcoin, Ethereum, and Polygon.

This incident contributes to an alarming trend of security breaches in DeFi. The LayerZero-powered Kelp DAO bridge exploit drained $292 million, resulting in significant debt on Aave. Since that event, DefiLlama has reported at least 10 attacks on various DeFi projects.