Crypto Platform Faces $8.4 Million Loss After Exploit Compromises Admin Privileges

Zoth, a platform specializing in re-staking real-world assets (RWA), has suffered a significant security breach, resulting in the theft of over $8.4 million in crypto.

The hack involved an exploit of the platform’s deployer wallet. Within minutes, the stolen funds were converted into the DAI stablecoin and transferred to an external address.

In response, Zoth quickly entered maintenance mode to investigate the breach. The platform confirmed the hack and assured users that it was actively working with partners to resolve the issue.

A detailed report will be released once the investigation is complete. Meanwhile, PeckShield reported that the stolen funds had been swapped for Ethereum (ETH).

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Cyvers indicated that the hack was likely due to a leak in admin privileges, with a suspicious address upgrading the protocol’s smart contract just before the exploit was detected.

This allowed the attacker to bypass security measures and seize control of user funds. To prevent such attacks in the future, experts recommend implementing stronger security protocols, including multisig upgrades and better key management, as well as adding real-time alerts for any changes in admin roles.

Despite these solutions, the risk of similar attacks remains a concern in decentralized finance (DeFi), where privileged roles continue to be targeted.

Alexander Stefanov