The troubled cryptocurrency exchange Zonda has disclosed that a Bitcoin wallet containing approximately 4,500 BTC (worth around $300 million at current prices) is inaccessible due to missing private keys, according to a statement from its CEO. The revelation comes amid an ongoing withdrawal crisis that has left users unable to access their funds.
Zonda, formerly known as BitBay, is one of Central Europe’s largest crypto exchanges. The company recently underwent a rebranding and ownership transition, during which critical security protocols allegedly failed. Sources familiar with the matter say the private keys for the cold wallet were never properly transferred to new management.
“This appears to be a catastrophic failure in operational handover procedures,” said a blockchain security analyst who requested anonymity due to client relationships. “Cold wallet keys should have been the first priority during any transition.”
The exchange has faced growing scrutiny since first suspending withdrawals in late 2023. Regulatory filings show Zonda has been negotiating with potential investors to secure emergency funding. Market analysts warn the lost BTC could significantly impact the exchange’s solvency.
If unresolved, this incident may prompt tighter regulations for crypto custody services in Europe. The case highlights persistent vulnerabilities in digital asset security, particularly during corporate transitions.