Incident Report: Ledger incident Forces Full Freeze on Zilliqa Legacy Transfers Following Critical App Flaw

TL;DR:
- Zilliqa suspended native transactions after confirming a critical security flaw on July 21, 2026.
- The vulnerability affected randomness generation in the Ledger application released between 2019 and 2026.
- The ZIL token traded at $0.0024 as of July 22, 2026, recording a 17% weekly decline.
The layer-1 blockchain Zilliqa temporarily halted transfer processing on its non-EVM native network due to a Ledger incident that compromises user key privacy. The direct intervention was executed on July 21, 2026, aiming to prevent the unauthorized draining of funds stored in cold wallets.
The technical issue lies in the random number generation routine, or ephemeral nonces, used by the hardware wallet application. A lack of entropy during the cryptographic signing process allowed external observers to deduce the private key of any exposed address.
According to official data shared by the network’s developers, an attacker only needed to collect approximately five public signatures issued by the same account to reconstruct the cryptographic secret within seconds using standard hardware.
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