Zoth Targeted In Security Breach, $8.4M Withdrawn And Converted To DAI
In Brief
Cyvers Alerts detected a suspicious $8.4 million transaction involving Zoth, indicating that the protocol’s deployer wallet may have been compromised.
Real-time security monitoring platform Cyvers Alerts identified a potentially malicious transaction involving the restaking layer for RWAFi Zoth, suggesting that the protocol’s deployer wallet may have been compromised.
According to the report, earlier today, the proxy contract “USD0PPSubVaultUpgradeable” was modified and upgraded to a contract linked to a suspicious address. Shortly after this change, an attacker withdrew approximately $8.4 million in USD0++. Within minutes, the stolen assets were converted into DAI and transferred to another wallet.
Meanwhile, blockchain security firm SlowMist has confirmed that Zoth was exploited, likely due to an administrative privilege leak. This breach allowed the attacker to manipulate the logic contract and replace it with a malicious one, facilitating the unauthorized transactions.
Following the incident, the Zoth website was briefly placed in maintenance mode, possibly as a precautionary measure in response to the security breach. However, it is now fully operational.
In an official statement, Zoth acknowledged the security incident. The platform assured users that it is actively investigating the breach and implementing all necessary measures to address the issue as quickly as possible.
Additionally, Zoth has committed to publishing a comprehensive report once the investigation is concluded, providing full transparency on the nature of the attack and the steps taken to mitigate its impact.
What Is Zoth?
Zoth is an on-chain marketplace focused on global trade finance, providing high-yield fixed-income opportunities backed by real-world assets (RWAs). The platform is designed to connect businesses in emerging markets with modern capital solutions, helping bridge the gap between lenders and companies in need of financing. Through its services, Zoth enables tokenization of mutualized real-world collateral and offers a liquid staking pool, allowing investors to exit early while optimizing yields.
Recently, Zoth introduced public access to ZeUSD, its native stablecoin, allowing users to mint and engage in on-chain transactions.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
