Zoth Protocol Loses $8M in Latest DeFi Exploit

The real-world asset (RWA) tokenization platform, Zoth protocol, has lost over $8 million in a latest DeFi exploit. Following the exploit, the protocol has put its front-end on maintenance mode until the issue is resolved. 

On its official X handle, Zoth team announced that their system has encountered an exploit and they are actively investigating the incident. 

“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,” said the Zoth team, adding “Your patience and understanding mean a lot to us. Further updates will follow soon.” 

Web3 security firm Securr noted that the exploit occurred as Zoth’s deployer wallet was compromised and the attacker upgraded protocol’s proxy contract with the malicious code. The attacker then withdrew $8.4 million worth of USD0++ tokens and swapped it all for DAI stablecoin. 

USD0++ is the liquid derivative version for USD0 stablecoin, which is launched by the RWA tokenization platform Usual Protocol. It offers rewards while remaining transferable, with $USUAL rewards incentivizing the growth and adoption of USD0.

As per Etherscan data, the attacker address has now swapped all stolen assets into 4,223.10 ETH – currently valued at $8.3 million.