ZetaChain Halts Transfers As DefiLlama Reports $300K Loss

ZetaChain has paused cross-chain transactions on its mainnet after detecting an attack on its GatewayEVM contract. 

The Layer 1 network said the move was a precaution while the team investigates the incident. GatewayEVM works as a key entry point for cross-chain activity between EVM-compatible networks and applications on ZetaChain. The contract helps route interactions across connected chains.

ZetaChain said the attack affected only internal team wallets. The team added that it had already closed the attack path to stop more funds from being compromised.

“As a precaution, cross-chain transactions are currently paused on ZetaChain,” the team said. “Investigation is still ongoing, and at this time no user funds were impacted by this attack.”

DefiLlama reports $300,000 loss

DefiLlama data shows the attack caused about $300,000 in losses. ZetaChain has not confirmed the exact amount and said it plans to publish a full post-mortem.

According to ZetaChain’s official status page, cross-chain transactions remained paused as of 9:00 p.m. ET on Monday. That was about nine hours after the team first identified the attack.

DeFi security concerns continue

ZetaChain launched its mainnet in early 2024 and focuses on blockchain interoperability. The project describes itself as a universal blockchain that connects networks such as Bitcoin, Ethereum, and Polygon.

The attack comes after several recent DeFi security incidents. The LayerZero-powered Kelp DAO bridge exploit drained $292 million and created bad debt on Aave. Since that event, DefiLlama data shows at least 10 attacks on DeFi projects.