Zilliqa Users Suffer Multiple Loss of Funds from Recurring Network Bug

Zilliqa, the high-throughput blockchain platform, has recently encountered another technical issue, which caused network disruption and sparked concern among its user base.

In a series of communications, the company acknowledged the problem, assuring users that all funds are safe and that the issue is unrelated to the recent Zilliqa 2.0 upgrade.

Initially, Zilliqa stated that the network was fully operational. However, they later clarified that the network had stopped producing blocks and stalled due to an unforeseen bug. This unexpected downtime has affected users in various ways, causing inconvenience and raising questions about the platform’s stability.

“The network was operational & working fine until the network stopped producing blocks & stalled due to another bug last night,” Zilliqa explained, emphasizing that their team is actively investigating the issue, debugging the system, and diligently working towards restoring the network to full functionality.

Zilliqa Community Reactions

Unfortunately, this recent event follows other reported difficulties. Several users have taken to social media platforms, particularly X (formerly Twitter), to express their concerns and share their experiences.

One user described losing access to their Luna tokens held within the Zilliqa-native ZillPay wallet. Upon logging in, the interface displayed a new account devoid of any transaction history. Despite attempts to recover the wallet using the recovery phrase, the balance remained at zero.

Adding to the growing unease, another user highlighted a surge in pending transactions within the network pool, likely due to the bug. They reported attempting multiple swaps, only to have transactions remain unprocessed, illustrating the real-world impact of the network disruption.

Furthermore, a separate incident involved a user who, after replacing their laptop, encountered difficulties recovering their ZillPay wallet using their recovery phrase.

Furthermore, instead of restoring access to their existing wallet, the system generated a new wallet address, leaving the user’s funds seemingly inaccessible. Understandably distressed, the user cautioned others against using the ZillPay wallet.

The situation has undoubtedly impacted user trust, and it remains to be seen how Zilliqa will address these concerns, restore functionality, and regain user confidence moving forward.