ILITY Network Confirms Security Incident, Cross-Chain Bridge Temporarily Halted

Huo Xing Finance reports that on October 17, ILITY announced on X that a security incident occurred on the ILITY Network, resulting in the temporary suspension of the ILITY cross-chain bridge. The team is currently cooperating with law enforcement agencies, cryptography forensic experts, and investors to investigate the incident, but has not yet disclosed the amount of losses or details of the attack. Chain analyst Specter observed that a wallet transferred approximately 35,700 ZEC (valued at around $41 million at the time) from a privacy pool, followed by movements through NEAR Intents and multiple addresses to the Bitcoin and Ethereum networks. Specter’s analysis suggests these addresses are linked to the ILITY cross-chain bridge and estimates that approximately 4.1 million ILY tokens have exited through the bridge. Due to Zcash’s privacy features, it has not been confirmed whether these ZEC funds were stolen or their exact connection to the ILITY incident.