Zilliqa urges transfer pauses after partner wallet theft; Upbit adds caution flag

Zilliqa said on July 20 that an unnamed exchange partner suffered a cold-wallet theft involving ZIL tokens and asked exchanges to temporarily suspend deposits and withdrawals while investigators determine the cause and scope. Bitget, Coinone and KuCoin paused some ZIL transfers, and Upbit later placed ZIL/KRW and ZIL/BTC on its trading caution list under South Korea’s Virtual Asset User Protection Act, citing possible unresolved security risks tied to the ZIL wallet or underlying ledger. Upbit said its review period runs from July 22, 2026 through August 17-21, and that withdrawals would be prioritized if services resume. Zilliqa and CEO Alexander Zahnd said the issue appears tied to a partner wallet rather than a confirmed breach of the Zilliqa network itself, but they have not disclosed the affected exchange, the amount stolen, the loss value, or the attack method.