The project team announced that the incident only affected internal wallets. The attack was neutralized nine hours after detection. According to DefiLlama, the project lost $300,000, but ZetaChain didn't disclose the exact amount of the hit. The developers promised to release a detailed analysis of the incident and roll out a patch to fix the vulnerability.
"As a precaution, cross-chain transactions on ZetaChain are currently paused. An investigation into the incident is underway, and user funds remain secure," said the ZetaChain team.
In light of the attack, the ZETA coin has dropped by 1.07% in the last 24 hours, down to $0.05436. The daily trading volume for this crypto has decreased by 31.29%, now at $7.6 million, and its market cap is currently at $74.14 million.
The hacker attack on the project occurred after the breach of the Kelp DAO cross-chain bridge built on LayerZero, resulting in the extraction of crypto assets worth $293 million from the protocol. This led to a significant unsecured debt in the Aave lending protocol, prompting decentralized finance (DeFi) protocols to raise over 43,500 ETH, valued at $101 million, for its rescue.