ZetaChain Halts Cross-Chain Transactions After Contract Attack

ZetaChain, a blockchain platform, has temporarily halted cross-chain transactions following an attack on its GatewayEVM contract. The GatewayEVM contract plays a crucial role in the network, enabling asset transfers between blockchains such as Ethereum and Polygon.

The attack allowed hackers to initiate malicious cross-chain calls, which were executed by a relayer system and processed on target chains, allowing funds to be withdrawn from wallets. However, ZetaChain claims that only team wallets were compromised, with user funds remaining safe.

SlowMist, a blockchain security company, had previously reported an early vulnerability in the GatewayZEVM contract's call function, which lacked access control and input validation. This allowed any user to initiate malicious cross-chain calls, leading to unauthorized transfers.

ZetaChain has paused cross-chain transfers while it investigates the incident and implements security fixes. A post-mortem report is expected soon, which may provide additional insights into the attack and potential improvements to prevent similar incidents in the future.