As an analyst, I’m tracking a potential risk with Zilliqa (ZIL). Upbit, a major exchange in South Korea, has issued a warning about the coin after a serious security flaw was found in its Ledger application. This means users should exercise caution when dealing with ZIL, especially if they store it using a Ledger device.
Upbit exchange has flagged ZIL as a potentially risky asset, according to Wu Blockchain. This means they may stop supporting trades of ZIL, and could even remove it from their platform entirely if current security problems aren’t fixed.
A security problem with Zilliqa’s official app for the Ledger hardware wallet could potentially expose users’ private keys. Zilliqa has revealed that, after roughly five transactions, it might be possible to recover these keys from publicly available signature data. Following this announcement, cryptocurrency exchange Upbit has labeled ZIL (Zilliqa’s native token) as a risky asset and urged caution.
— Wu Blockchain (@WuBlockchain) July 22, 2026
Zilliqa announced earlier today, on July 22nd, that a serious security issue exists within their Ledger application. This flaw could potentially allow someone to recover your private key – the secret code controlling your Zilliqa funds – after just five transactions using information publicly available from those transactions.
As an analyst, I’m tracking a significant issue impacting Zilliqa transactions. It appears all versions of the platform released between 2019 and 2026 are vulnerable, and we’ve already seen evidence of active exploitation as of July 19th. To address this, we’ve temporarily suspended native Zilliqa transactions and are planning to retire the affected keys. Fortunately, transactions using the EVM compatibility layer are not impacted.
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After this development, Upbit labeled ZIL as a risky asset on both its Korean Won (KRW) and Bitcoin (BTC) markets. Deposits and withdrawals of ZIL are currently paused, and Upbit may stop allowing trading of it altogether if the problem isn’t fixed.
What happened?
Zilliqa revealed on July 22nd that their Ledger application had a security flaw related to how it creates unique transaction IDs (a ‘nonce’ issue). They shared this information via a post on X.
A serious security flaw was found in the Zilliqa Ledger that impacts how digital signatures are created for standard Zilliqa transactions. This flaw allows attackers to potentially steal a user’s private key by exploiting weaknesses in the signature generation process, using information publicly available on the blockchain.
The Zilliqa team says they’ve already taken steps to stop any more losses and are finishing up a plan to fix the issue.
A security flaw impacts Zilliqa users who sign transactions with a Ledger device. If you’ve used the Zilliqa app on your Ledger to send five or more Zilliqa transactions, your private key might be at risk of being recovered from past transaction data stored on the blockchain – even if you update the software. This means those accounts should be considered compromised.
However, this problem only affects direct signing within the Ledger app itself and doesn’t impact regular Ethereum (EVM) transactions.
2026-07-22 16:44