Decentralized protocol Zoth was hit by a hack, and the attacker made off with more than $8 million

Zoth, a restaking protocol backed by Borderless and Blockchain Founders Fund, has reportedly suffered a security breach that led to the draining of $8.4 million in assets.

Decentralized protocol Zoth was hit by a hack through a compromised contract, and the attacker made off with more than $8 million, quickly turning it into DAI.

Stablecoin restaking protocol Zoth has reportedly suffered a security breach that led to the draining of $8.4 million in assets, according to an alert from blockchain security firm Cyvers Alerts.

The report stated that the protocol’s deployer wallet was compromised, which in turn triggered the suspicious transaction. Around 30 minutes before the attack, a proxy contract called “USD0PPSubVaultUpgradeable” was upgraded, with the upgrade linked to a contract created by an address associated with the suspected attacker.

Per initial estimates, the attacker withdrew approximately $8.4 million in stablecoin USD0++. Furthermore, it appears that the stolen funds were quickly converted as within minutes, all stolen assets were swapped for the DAI (DAI) stablecoin and transferred to another address.

Following the breach, Zoth’s website was taken down and is currently in maintenance mode. The maintenance seems to be a precautionary response to the ongoing security concerns, although no official confirmation on the extent of the breach has been provided.

Announcing the breach, Zoth said that the protocol’s 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.”

ZOTH

The community is advised to remain alert as the platform works on resolving the issue. More updates are expected as more information becomes available.

Founded by Pritam Dutta and Koushik Bhargav in January 2023, Zoth secured $4 million in August 2024 to launch its tokenized liquid note, backed by secure assets like U.S. Treasury Bills and top-rated corporate bonds. The funding round saw participation from investors like Taisu Ventures, G20, and Fat Cat Ventures, and a grant from Ripple's XRPL Foundation.