Zilliqa, a blockchain platform that focuses on scalability, security, and decentralization, on February 6, 2025 had identified a security vulnerability within its X-bridge, leading to an attack. The vulnerability was located in a newly developed token management contract. The attacker took advantage of this flaw and minted 531 Zilliqa versions of ETH (zETH) and 2.2133 Zilliqa versions of BNB (zBNB). Later on the attacker transferred few of these assets across both the blockchain networks, Ethereum and BSC using the X-Bridge as per Wu Blockchain.
Zilliqa’s Response to the Security Breach
The blockchain platform got into action immediately and suspended the X-Bridge services to prevent any further exploitation. The team also notified the Switcheo to disable zETH transactions on ZilSwap, a decentralized exchange (DEX) operated by Carbon. The blockchain platform is urging users to not trade the affected assets to mitigate potential losses.
What’s Next?
The blockchain platform plans to abandon the original zETH and deploy new tokens, preserving only legitimate positions held before February 18, 2025. The specific timing for this transition is yet to be determined.
X-Bridge facilitates token transfers between the blockchain and other EVM-compatible networks. It operates on Zilliqa 2.0’s native cross-chainbroker (UCCB) protocol. To use X-Bridge, users must connect with an EVM wallet like MetaMask.
This incident follows the migration of ZilBridge to X-Bridge in December 2024, prompted by the closure of Poly Network. ZilBrdige, the original ecosystem bridge, enabled token trasnfers between the blockchain platform and supported EVM networks. The migration aimed to be in line with Zilliqa 2.0’s approach to develop interoperability.
Zilliqa is actively investigating the security incident affecting zETH and zBNB tokens on X-bridge and its impact on the ZIL/zETH pool on ZilSwap. Users are urged to stay vigilant and take necessary precautions to protect their assets.
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