Zipcoin Plans Shutdown After Team Reports Codebase Breach

Zipcoin plans to wind down after its team said an intrusion exposed credentials and private keys for project wallets and infrastructure, as the Zipcoin (ZC) token fell 89.42% over 24 hours.

The team said Railway notified it on Oct. 21 that the entire codebase had been compromised. The codebase contained credentials and private keys that could give an attacker access to controls for project wallets and infrastructure. Attempts to migrate the project or rotate credentials did not produce a secure way to continue operating, the team said.

Wallets that remain accessible to the team hold 2.2% of ZC's total supply. Zipcoin set a six-hour selling window for existing holders, then planned to sell its remaining holdings and consolidate the proceeds. The disposal was scheduled for noon ET (16:00 UTC) Thursday, Oct. 22. The team said consolidating the funds was intended to keep an attacker from moving the assets.

Zipcoin said the project was also affected by a separate UNCX security incident on Oct. 15. The project takes its name from a currency in Snowmoon, an open-source science-fiction novel.