- ZetaChain halts cross-chain transfers after exploit targets critical GatewayEVM contract
- Internal wallets hit as vulnerability allows unauthorized cross-chain calls execution
- ZETA token drops as trading volume declines following network disruption
ZetaChain suspended cross-chain transfers after a contract exploit disrupted operations and triggered losses within internal wallets managed by the team. The incident targeted the GatewayEVM contract, which connects external blockchains to applications running on ZetaChain and enables cross-chain interactions.
According to the team, the exploit affected only internal wallets under its control, which significantly reduced the overall impact on users and external participants. However, the pause in cross-chain transfers has temporarily disrupted one of the network’s most important features supporting interoperability.
Moreover, developers moved quickly to block the attack path and prevent further unauthorized activity, which helped stabilize the system in the short term. As a result, the team does not expect additional losses, although transfers remain paused while investigations continue. Additionally, ZetaChain confirmed it will release a detailed post-mortem report after completing its review, which should clarify the root cause and outline security improvements.
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Contract Weakness Triggers Cross-Chain Disruption
GatewayEVM plays a central role in enabling communication between blockchain networks, as it acts as the main entry point for cross-chain operations and asset transfers. Therefore, any weakness within this layer can affect how assets and data move across ecosystems.
According to blockchain security firm SlowMist, early findings suggest the issue may stem from weak access control mechanisms within the contract’s call function. The firm explained that the function lacked proper validation checks, which allowed unauthorized users to trigger malicious requests.
These requests were then processed by the relayer system and executed on connected networks, which gave the attacker a pathway to move funds from internal wallets. However, ZetaChain has not yet confirmed these findings in its official report.
ZETA Token Slides As Market Reacts
The team has not disclosed the exact financial impact of the exploit, although some estimates suggest losses could be around $300,000 based on early reports. Even so, the limited exposure helped reduce broader market concern.
Meanwhile, the ZETA token declined by about 4.8% within 24 hours, trading between $0.053 and $0.059 during that period as per CoinMarketCap data. Trading volume also dropped by more than 30%, reflecting cautious investor sentiment. ZetaChain contained the immediate damage through a rapid response, yet the suspension highlights risks tied to cross-chain infrastructure and ongoing security challenges.
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