Woofun AI reports that Zilliqa has updated its security incident investigation, confirming that the theft of ZIL assets from a partner exchange’s cold wallet stems from a vulnerability in the transaction signing mechanism of specific older ZIL1 wallets. The team stated there is no evidence linking the breach to the exchange’s internal wallet management or operational processes.

Zilliqa has instructed all partner exchanges to suspend ZIL deposits and withdrawals to prevent the movement or sale of stolen funds through centralized platforms. The protocol continues to determine the exact root cause and will release a comprehensive post-incident analysis report containing technical findings and recommended actions once the investigation concludes.