Zoth, a Real World Asset (RWA) re-staking protocol, backed by Borderless and Blockchain Founder Fund has suffered exploitation leading to the loss of $8.4M in asset. Blockchain security firm, Cyvers Alerts confirmed the attack in an alert posted on its X page on Friday.
According to Cyvers Alert, the hackers compromised Zoth deployer’s wallet, leading to the withdrawal of $8.4M in crypto assets. The security firm added that the asset was converted into $DAI and transferred to another wallet.
According to the post, a proxy contract called “USD0PPSubVaultUpgradeable” was upgraded 30 minutes before the attack. The upgraded contract is suspected to be created by the attacker. However, Zoth has reportedly taken down its website for maintenance.
Zoth reacts to the attack on X
Reacting to the development, Zoth released a statement on its X page stating that it has experienced a security breach. The protocol added that they are currently investigating and working tirelessly to resolve the breach as soon as possible.
Zoth added that it is working closely with its partners to minimize the impact and resolve the issue completely. Also, the protocol promises to issue a detailed report as soon as the investigation is completed.
It is worth noting that Zoth protocol was founded by Pritam Dutta and Koushik Bhargav in January 2023. Barely three weeks ago, Zoth also announced that its ZeUSD has gone live. As revealed, the protocol issued $28 million ZeUSD for public access.
Also in August 2024, the re-stacking protocol also recieved support from investors like Taisu Ventures, G20, Fat Cat Ventures, and GemHead Capital to raise $4 million in a funding round. As revealed, the fund was to launch Zoth Tokenized Liquid Notes (ZTLN) which offers a stable, secured and liquid yield opportunity. The ZTLN is backed by US Treasuries and investment-grade corporate bonds.
In May 2024, Zoth protocol also partnered with Decubate to launch its Initial DEX Offering (IDO). Decubate is a leader in token launch, offering cutting-edge DeFi solutions, empowering innovators, and providing a robust environment for growth.
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