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ILITY Network Security Incident Halts Cross-Chain Bridge Operations

ILITY Network Security Incident Halts Cross-Chain Bridge Operations

First seen 19 Oct 2026, 10:19 UTC • •
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ThreatCluster AI
ThreatCluster •October 19, 2026 at 11:49 UTC
  • •ILITY Network's cross-chain bridge was temporarily halted due to a security incident.
  • •Approximately $41 million in ZEC was transferred from a privacy pool, with significant ILY token losses.
  • •Investigation is ongoing with law enforcement and forensic experts involved.

On October 17, 2026, ILITY Network reported a security incident that led to the temporary suspension of its cross-chain bridge. The incident involved a wallet transferring approximately 35,700 ZEC, valued at around $41 million, from a privacy pool, with funds subsequently routed through NEAR Intents to Bitcoin and Ethereum networks. Chain analyst Specter noted that around 4.1 million ILY tokens were emptied through the bridge, with the outgoing address currently holding about $25 million in ZEC. ILITY is working with law enforcement and forensic experts to investigate the incident, but has not disclosed the extent of the losses or specific details of the attack. The nature of the security vulnerability remains unclear, and it has not been confirmed whether the ZEC funds were stolen.

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Timeline

2026-10-17
Security incident reported
ILITY Network announced a security incident affecting its cross-chain bridge, leading to its suspension.
Kucoin
2026-10-19
Further details released
On October 19, ILITY provided updates on the ongoing investigation and confirmed the suspension of the cross-chain bridge.
Kucoin

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Common questions

What specific vulnerabilities are involved?
The articles do not specify the exact vulnerabilities, only that a security incident occurred.
How much value is at risk?
Approximately $41 million in ZEC and around 4.1 million ILY tokens are reported affected.
What actions are being taken?
ILITY Network is collaborating with law enforcement and forensic experts to investigate the incident.