Zilliqa halts all native transactions due to Ledger app flaw dating back to 2019

On Wednesday, July 22, 2026, Zilliqa made the decision to suspend all native transactions after identifying a critical vulnerability in its Ledger hardware wallet app that had been present since 2019. This announcement follows several days of security crises, with the cause identified as a long-standing flaw that could expose private keys through on-chain signatures.

The situation began on July 20, 2026, when Zilliqa (ZIL) tokens were stolen from the cold wallet of an exchange partner. During the initial investigation, the Zilliqa team discovered a fundamental design error in the hardware wallet integration that went beyond a simple external attack, leading them to choose a network shutdown to prevent further damage.

The suspension of native transactions on the Zilliqa network was formalized shortly after noon (UTC) on July 22, 2026. The Zilliqa team explained that the Ledger app vulnerability could expose private keys via on-chain signatures, posing a direct threat to all users storing ZIL on Ledger devices.

We are aware of a security incident where ZIL was stolen from one of our exchange partners. We are currently working with the relevant parties and conducting an active investigation to determine the root cause and the full scope. — Zilliqa Official Statement (July 20, 2026)

Signs of the security crisis began to emerge as early as July 19, 2026. Major exchanges, including KuCoin, were notified of anomalies in the Zilliqa network and preemptively suspended ZIL deposit and withdrawal services. Market anxiety intensified after Zilliqa officially confirmed the cold wallet theft on July 20.

Technical flaws in the Ledger app dating back to 2019

The bug discovered this time is a long-term security loophole dating back to 2019. According to technical analysis, there was a structural flaw in the Ledger app where partial information of the private key could be leaked if certain conditions were met during the signing process of on-chain transactions. This is considered a matter that fundamentally undermines the security, which is the core value of hardware wallets.

• KuCoin: Announced the temporary suspension of ZIL deposits and withdrawals first around 7:00 AM (UTC) on July 19, 2026.
• Bitget: Implemented service suspension and user asset protection measures citing network instability on July 21, 2026.
• Zilliqa Team: Requested all exchanges to suspend ZIL transfers and cooperate with security checks on July 20, 2026.
• Ledger: Commenced a detailed technical review of the signing logic flaw that has existed since the 2019 app version.

This security incident also had an immediate impact on Zilliqa's market value. The price of ZIL, which maintained the $0.0247 level in early July 2026, showed a sharp decline after the news of the cold wallet theft on July 20, turning into a bearish market. Investors are concerned about a liquidity crunch that may occur if the network suspension is prolonged.

In particular, this flaw is shocking the entire ecosystem as it was not discovered even in the security audits conducted by Hacken and Hashlock in 2025. Zilliqa is set to introduce 'First Live Regulated Flows' in the second half of 2026, but setbacks in roadmap implementation are inevitable due to this incident.

Future recovery plans and user precautions

The Zilliqa technical team is currently working with Ledger to develop a new version of the application with a security patch applied. Ledger device users must perform the app update that will be announced in the future and should refrain from moving assets until native transactions resume. Zilliqa plans to announce the timing of network normalization through official channels as soon as the investigation is completed.