ZetaChain Freezes Transfers Following DefiLlama’s Report of $300K Loss

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

The Layer 1 network stated the suspension was a precautionary measure while the team investigates the issue. GatewayEVM serves as a crucial entry point for cross-chain interactions between EVM-compatible networks and applications on ZetaChain, facilitating engagement across connected chains.

ZetaChain confirmed that the attack only impacted internal team wallets, and they have since closed the vulnerability to prevent further loss of funds.

“As a precaution, cross-chain transactions are currently paused on ZetaChain,” the team stated. “The investigation is ongoing, and as of now, no user funds have been affected by this attack.”

DefiLlama reports $300,000 loss

According to DefiLlama, the attack has led to approximate losses of $300,000. ZetaChain has not verified the specific figure but has mentioned it intends to release a full post-mortem report.

ZetaChain’s official status page confirmed that cross-chain transactions were on hold as of 9:00 p.m. ET on Monday, approximately nine hours post the initial detection of the attack.

DeFi security concerns persist

ZetaChain launched its mainnet in early 2024, emphasizing blockchain interoperability. The initiative describes itself as a universal blockchain connecting networks such as Bitcoin, Ethereum, and Polygon.

This incident follows a series of recent security breaches in DeFi. The LayerZero-powered Kelp DAO bridge exploit resulted in a drain of $292 million, creating significant bad debt on Aave. Since that incident, DefiLlama reports at least 10 attacks on various DeFi projects.