Decentralized protocol Zoth suffers a significant security breach, resulting in the theft of over $8 million, which was swiftly converted into DAI.
Zoth, a restaking protocol, has been the target of a hacking incident that led to the loss of $8.4 million in assets. A recent alert from a blockchain security firm revealed that the protocol’s deployer wallet was compromised, leading to suspicious transactions.
Details from the alert indicate that just 30 minutes before the attack, a proxy contract named “USD0PPSubVaultUpgradeable” was upgraded, linking the upgrade to a contract associated with the presumed attacker. Initial reports estimate that $8.4 million in stablecoin was withdrawn by the attacker.
Following the breach, the stolen funds were quickly converted to the DAI stablecoin and moved to another address. In response to this incident, the Zoth website has been taken offline and is currently in maintenance mode as a precaution against further security threats, although there has been no official confirmation on the full extent of the breach.
Zoth has acknowledged the security breach, stating, “our system has experienced a security breach.”
“We are working closely with our partners to mitigate the impact and fully resolve the issue. A detailed report with a clear view will be shared once the investigation is complete.”
The community is currently on high alert as Zoth addresses the situation. Additional updates are anticipated as more information becomes available.
Since its inception in January 2023, Zoth has made significant strides in the market, having raised $4 million in August 2024 to introduce its tokenized liquid note, supported by secure assets such as U.S. Treasury Bills and top-rated corporate bonds.
