Zilliqa Halts Native Transfers After Ledger Security Flaw

Layer 1 blockchain network Zilliqa has suspended all native transactions after uncovering a major security flaw in its Ledger application. The vulnerability lets attackers reconstruct private keys using on chain data. According to the team, the issue affects every app version released since 2019, and active exploitation was spotted on July 19.

The bug stems from how the app generates signatures for native Zilliqa transactions using weakened nonces. Because these signatures remain public on the blockchain, any account that broadcast about five or more native transactions signed with the Ledger app should be considered compromised. The team recently asked exchanges to pause deposits and withdrawals after a cold wallet breach, prompting South Korean platform Upbit to flag the token as a cautionary asset.

Zilliqa trades near $0.0024, down roughly 19 percent over the week following the security incident. Users who utilized Ethereum Virtual Machine compatible tools remain safe from the issue. The network is working on a corrected version of the app with Ledger and advises potentially exposed users to wait for official instructions before moving funds.