ZetaChain Hack: Internal Wallet Breach Triggers Cross-Chain Pause, ZETA Price Slips

Layer-1 blockchain network ZetaChain recently confirmed a security incident that briefly disrupted its operations, drawing attention across the crypto community. The team disclosed that the hack impacted only its internal team wallets and did not compromise user funds, a critical reassurance amid growing concerns about blockchain security and cross-chain vulnerabilities.

Following the incident, ZetaChain temporarily paused its cross-chain transactions as a precautionary measure while engineers investigated the breach. According to the project’s official status updates, the issue was identified and actively addressed within approximately six hours. The team stated it had already blocked the attack vector and is working on deploying a complete fix, with a detailed post-mortem report expected after the investigation concludes.

This event marks the second notable cross-chain-related exploit in April, following the earlier KelpDAO hack. As interoperability becomes a core feature in blockchain ecosystems, such incidents continue to highlight the potential risks associated with cross-chain infrastructure and bridges.

ZetaChain’s status page confirmed that mainnet cross-chain activity remained paused during the response period, emphasizing a cautious approach to safeguarding the network. While the swift action helped limit the scope of the breach, the incident still impacted market sentiment. The native ZETA token saw a decline of approximately 4.8% over 24 hours, trading near $0.054. Market data indicated a daily price range between $0.053 and $0.059 during the volatility.

Community reactions have been mixed. Some users commended the project’s transparency and rapid communication, while others voiced concerns over recurring security issues in cross-chain protocols. As blockchain adoption grows, maintaining trust through robust security measures and clear incident reporting remains essential.

ZetaChain’s response may help restore confidence, but the broader conversation around cross-chain security risks is likely to continue shaping the industry.