ZetaChain Freezes Cross-Chain Moves After GatewayEVM Contract Attack

ZetaChain paused cross-chain transactions after GatewayEVM contract attack, saying user funds stayed safe while investigations and security fixes continue.

ZetaChain temporarily stopped cross-chain transactions after a contract attack. The project claimed only team wallets were compromised. The attack did not affect user funds. And the team swiftly shut down the attack vector. Now the team is investigating the incident.

ZetaChain said the hackers attacked the GatewayEVM contract. This contract is used to transfer assets across chains. So, the problem was severe and needed to be addressed. But the company emphasised that users’ assets were secure.

GatewayEVM Contract Plays Key Role in Network

GatewayEVM is a key component of ZetaChain. It is a bridge between blockchains. For instance, it connects to Ethereum and Polygon. It is used to transfer tokens. So, any vulnerability can pose significant risks.

The contract also processes inbound transactions. Moreover, assets such as ETH can be locked first. And then equivalent tokens are minted on ZetaChain. Similarly, users can withdraw them later. As such, the contract is a critical part of the network.

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Further, GatewayEVM also supports cross-chain contract calls. These calls enable apps on one blockchain to call apps on another. This is helpful for developers and users. But it also adds to the complexity. So, security is crucial.

SlowMist, a blockchain security company, has reported an early vulnerability. The problem was related to the call function of the GatewayZEVM contract. SlowMist reported the function did not have access control. It also reportedly did not have input validation.

As a result, any user could have initiated malicious cross-chain calls. Then, a relayer system executed the calls. After that, the calls were processed on the target chains. This allowed the hacker to withdraw funds from the wallets.

ZetaChain Pauses Transfers During Contract Attack Investigation

ZetaChain claimed the attack only affected team wallets. The attack did not affect user funds. This is critical because users are often concerned about substantial losses. So far, the project claims user funds are safe.

The team also said the attack vector was shut down rapidly. So no further funds are likely to be stolen. The quick response likely minimised the impact. But a review is still underway before services resume.

To be safe, cross-chain transfers were halted. This stops further unauthorised transfers while the problem is fixed. Pausing services is common in hacks. While frustrating, it can save the network.

There may be some delays for inter-chain transfers. But caution is normal after security breaches. Services are typically tested before being restarted. As a result, the service may only restart after the tests are done.

ZetaChain will release a post-mortem report soon. This will describe the incident and how it was resolved. It may also contain security improvements. This can help regain consumer confidence.

Moreover, the attack highlights the dangers of bridge technology. Bridge technology links blockchains together. But they also open new doors for hackers. So, audits and controls are still needed.

There have been other attacks on bridges in the broader crypto industry. These incidents serve as a reminder for projects to enhance code security. Users should always follow official announcements. In the meantime, ZetaChain is investigating and recovering.

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