ZetaChain Halts Cross-Chain Activity After GatewayEVM Exploit

Highlights:

• ZetaChain paused cross-chain transfers after a GatewayEVM exploit hit internal wallets.
• The exploit targeted the main contract used for cross-chain transfers.
• ZETA price fell after the attack, trading near $0.05335 on the daily chart.

ZetaChain, an interoperability-focused Layer 1 network, paused cross-chain transactions on its mainnet after it detected an attack on April 27. The team confirmed that the attacker targeted its GatewayEVM contract on the mainnet to exploit cross-chain interactions across connected networks.

ZetaChain stated via its official X account that the attack affected only internal team wallets and did not impact user funds. The team blocked the attack vector within hours to prevent further unauthorized fund transfers from internal wallets. ZetaChain confirmed in its official statement that the breach did not affect any user funds on the network.

There was an attack against the ZetaChain GatewayEVM contract today that impacted the internal ZetaChain team wallets only. We've already blocked the attack vector so no more funds can be compromised and will be releasing a detailed post mortem after we have completed our…

— ZetaChain 🟩 (@ZetaChain) April 27, 2026

ZetaChain stated that it will publish a detailed post-mortem after completing its ongoing investigation into the exploit. ZetaChain paused all cross-chain transactions on its mainnet to prevent further risks after detecting the exploit in the contract. During the pause period, the status page marked the incident as identified and ongoing while the team worked on mitigation.

ZetaChain stated on its status page that it identified the attack vector and started preparing a patch to fix the issue. ZetaChain reported that all other systems, including mainnet and testnet components, continued operating without disruption during the incident. The network confirmed that its blockchain explorer, testnet faucet, and documentation portal remained fully operational during the incident period.

GatewayEVM Exploit Raises Concerns Over Cross-Chain Design Risks

The GatewayEVM contract is the primary access point for cross-chain transactions on ZetaChain. The contract bridges EVM-compatible external networks, such as Ethereum and Polygon, with applications on ZetaChain to facilitate cross-chain transactions.

The contract enables users or protocols to make token transfers and smart contract calls across different blockchain ecosystems through a single interface. The GatewayEVM contract enables cross-chain calls and token transfers to and from other chains.

The GatewayEVM contract also integrates with other network components. The ERC20Custody contract stores ERC-20 tokens that users deposit into ZetaChain. The ZetaConnector tracks ZETA token balances across multiple chains.

These components operate on ZetaChain to handle token custody and secure communication and transfers across chains. However, these components represent a single point of failure, where a security breach can affect many cross-chain transactions on the network.

ZETA Price Slips After Attack While DeFi Hacks Keep Coming

ZETA token price declined after reports of the exploit spread across the crypto market. The token is trading near $0.05424, reflecting a drop of about 0.3% within 24 hours. The coin hit a low of $0.05335 after the GatewayEVM exploit. The trading volume is down 35.07% to $7.37 million.

The attack adds to a series of DeFi exploits recorded throughout the month across multiple blockchain protocols and platforms. Data shows that more than ten attacks have occurred across DeFi projects after a major breach earlier in the month.

The most significant case involved Kelp DAO, where attackers drained about $292 million from a cross-chain bridge powered by LayerZero. The exploit targeted a verifier configuration and affected assets held on Ethereum.