Zoth Protocol Hit by $8.4 Million Security Breach: Report
- Zoth loses $8.4 million in assets after a security breach triggered by a compromised deployer wallet.
- The attacker quickly converted the stolen funds into DAI and transferred them to another address.
- Zoths website was taken down for maintenance as the team works to resolve the breach and improve security.
Zoth, restaking protocol that received funds from borderless and blockchain founders fund, has been hacked. As a result of the leak, it was revealed that the firm lost $8.4 million in streaming assets. According to Cyvers Alerts, a protocol, the deployer wallet was hacked, and the funds began to be withdrawn due to suspicious transactions.
Cyvers Alerts states that the attack happened after a proxy contract known as USD0PPSubVaultUpgradeable was upgraded. This upgrade was associated with a contract formed by an address belonging to the sting operation cutter. The upgrade happened just roughly 30 minutes to the time when the breach was observed. After that, the attacker has cashed out $8.4 million in stablecoin USD0++.
Zoth Website Taken Down for Security
The stolen funds were realized and instantly converted into the DAI stablecoin. In some cases, for instance, the assets were relocated to another address within a span of minutes. This meant that the funds were transferred within a short time raising concerns of the speed and level of the attack. As such, Zoth pulled its website and made it unavailable to the public while it posted a Coming Soon message. This was done to help further security issues that have been persistent in the past.
In the official statement, Zoths team has officially stated the fact of the security breach. In this they also eased public concern by telling them that they are in touch with partners to have the problem fixed. Zoth also promised to come up with a detailed explanation once he is through with the inquiry. As of now, the platform is reportedly making effort on how to reduce the effect of this breach from its users.
This has made the community have a heightened sense of security since the attack that happened to it. Zoth users are therefore advised to keep abreast in the coming days as more information unfolds. More modifications can be anticipated in the course of the investigation. It has been raised questions of security within decentralized applications as well as how secure they are regarding to the assets of users.
Secured $4 Million Funding
In August of 2024, the platform obtained $4 million for the issue of a tokenized liquid note with security in such assets as U.S. Treasury bills and corporate bonds with higher ratings. This funding round brought in investors such as Taisu Ventures, G20 and Fat Cat Ventures.
Nevertheless, there are instances when significant setbacks may be noted as in the case of Zoth which will strive to regain public trust. The protocol is also trying its best to enhance its security to avoid such incidents in the future. In the process of continuing to solve the problem for users, the team is very attentive to sharing more information and clarifications to the affected users.
Read more: https://www.tronweekly.com/zoth-protocol-hit-by-8-4-million-security/
Text source: TronWeekly
