ZITADEL 4.x before 4.17.1 does not check an organizations inactive state during Login V2 authentication, verifying only the individual users status. Users of a deactivated organization who hold valid credentials, an existing session, or a refresh token can still sign in, create sessions, and obtain or refresh tokens.
When an actor claims to have a given identity, the product does not prove or insufficiently proves that the claim is correct.