Zoth, a decentralized protocol, recently fell victim to a hack due to a compromised contract, resulting in the theft of over $8 million, which was rapidly converted into DAI.
The restaking protocol, supported by Borderless and Blockchain Founders Fund, experienced a significant security breach that led to $8.4 million being siphoned away. A notification from blockchain security experts highlighted that the deployer wallet of the protocol had been compromised, leading to the suspicious transactions.
Details from the alert indicate that half an hour prior to the incident, a proxy contract named “USD0PPSubVaultUpgradeable” was updated, with this upgrade being tied to a contract created by an address believed to belong to the alleged hacker. Initial findings suggest that the attacker withdrew $8.4 million in the stablecoin USD0++.
It seems the stolen funds were swiftly converted, as all assets were exchanged for the DAI stablecoin just minutes after the hack and subsequently transferred to a different address. In response to the breach, the Zoth website has been taken down and is currently in maintenance mode. This action appears to be a precautionary measure amid ongoing security issues, although no official details on the breach’s scope have been publicly shared.
In the aftermath of the attack, Zoth released a statement acknowledging that its system “has experienced a security breach.”
“We are collaborating closely with our partners to minimize the impact and fully address the issue. A thorough report providing clarity will be released once the investigation concludes.”
ZOTH
Currently, the community is on high alert as the platform seeks to resolve the matter. Further updates are anticipated as additional information becomes available.
Established in January 2023 by Pritam Dutta and Koushik Bhargav, Zoth successfully raised $4 million in August 2024 to launch its tokenized liquid note, backed by secure assets such as U.S. Treasury Bills and top-rated corporate bonds. The funding round attracted investments from firms like Taisu Ventures, G20, Fat Cat Ventures, and GemHead Capital, along with prominent angels from Coinbase and Hedera, as well as a grant from Ripple’s XRPL Foundation.