ILITY confirms security incident on its network and pauses cross-chain bridge, wallet transfers out approximately $41 million in ZEC

Odaily reports: ILITY announced on October 17 that a security incident occurred on the ILITY Network, and the ILITY cross-chain bridge has been temporarily shut down. The team is cooperating with law enforcement agencies, cryptographic forensic experts, and investors in the investigation, and has not yet disclosed the amount of losses or attack details. On-chain analyst Specter stated that a wallet was observed transferring approximately 35,700 ZEC out of the privacy pool, worth about $41 million at the time, which was subsequently routed through NEAR Intents and multiple addresses to the Bitcoin and Ethereum networks. Specter's tracing suggests that the relevant addresses are linked to the ILITY cross-chain bridge, and noted that approximately 4.1 million ILY tokens flowed out from the bridge. Due to the privacy features of Zcash, whether this ZEC constitutes stolen funds and its exact relationship to the ILITY incident have not yet been confirmed.