Altcoin Investors Beware! Security Crisis Deepens as Two Major Crypto Exchanges Add These Tokens to Their Warning List

Zilliqa (ZIL) Faces Major Security Crisis as Two Crypto Exchanges Add Token to Warning List

Zilliqa (ZIL), one of the popular altcoins from the 2021 bull market, is facing a major security issue after discovering a critical vulnerability in its Ledger hardware wallet application.

In a post on X, the Zilliqa team said the flaw affects the Ledger app used for ZIL transactions and could allow attackers to recover users’ private keys.

According to the team, the vulnerability impacts all versions of the ZIL Ledger app released between 2019 and 2026. Active exploitation of the flaw was detected on July 19.

As a precaution, Zilliqa has temporarily suspended ZIL transactions. However, transactions conducted through the Ethereum Virtual Machine (EVM) network are not affected by the vulnerability.

Following the incident, South Korea’s leading cryptocurrency exchanges, Upbit and Bithumb, designated ZIL as a warning asset and temporarily suspended ZIL deposits and withdrawals to protect users.

Both exchanges warned that they could completely delist ZIL if the security issue is not resolved within a reasonable timeframe or if Zilliqa fails to implement sufficient investor protection measures.

In response, Zilliqa is reviewing its security infrastructure and has urged users who store or transact ZIL through Ledger to immediately move their funds to a new wallet address and stop using the affected wallet.

This is not the first security incident involving Zilliqa. Previously, the project disclosed that ZIL tokens stored in a cold wallet were stolen following a security breach at one of its partner exchanges.