Zilliqa CEO Alexander Zahnd has stepped down while security incidents affecting the X-Bridge and token liquidity pools remain under investigation. The board now oversees the project directly. PlunderSwap estimates around $800,000 was stolen from the bridge.
Zilliqa CEO Alexander Zahnd has stepped down, and the board has taken direct oversight of the blockchain project. Investigators are still examining security incidents that hit its X-Bridge and token liquidity pools.
In an Oct. 27 statement, Zilliqa said Zahnd left at his own request. An external advisory firm specializing in cybersecurity and governance supports the board until permanent leadership is appointed.
X-Bridge paused and pools affected
The X-Bridge interface says all incoming and outgoing transactions are paused because of a security incident. Zilliqa told users not to use X-Bridge or the affected liquidity pools until further notice.
The project identified X-Bridge and ZRC2 proxy contracts used by pools, including PlunderSwap, as affected. It named zUSDT, SEED, kUSD and Zoge as affected tokens. However, it said native ZIL and the Zilliqa EVM network were not affected.
Losses and the node software bug
PlunderSwap's website estimates around $800,000 was stolen from X-Bridge and warns that the bridge-issued zUSDC, zUSDT, zWBTC and XCAD tokens are no longer backed. Zilliqa's Oct. 27 update did not give an overall loss figure.
The bridge had become part of the network's stablecoin infrastructure. In March, Zilliqa introduced zUSDC, a representation of USDC bridged through X-Bridge, for trading and liquidity pool use.
Separately, PlunderSwap estimated about $33,700 in direct and knock-on pool losses in an Oct. 23 thread. It identified four directly hit V3 pools: zUSDT/WZIL, SEED/kUSD, WZIL/SEED and ZOGE/WZIL.
The exchange attributed the pool losses to a bug in Zilliqa's node software. It said token transfers appeared during a swap but were discarded when the transaction was finalized, allowing pools to pay out assets without receiving payment.
Zilliqa said it was rotating all operational keys and working with exchanges and law enforcement. Its update gave no date for reopening X-Bridge.
Source: The Defiant
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