$8.4M Zoth Hack Shakes Crypto World: Stolen Assets Converted to Ethereum
On March 21, 2025, the crypto community was rattled by the $8.4M Zoth hack, a daring exploit that saw attackers drain millions from the Ethereum-based real-world asset (RWA) platform. The stolen assets, initially in USD0++ stablecoins, were swiftly converted to Ethereum, spotlighting vulnerabilities in DeFi security. This breach, the second for Zoth this month, has sent shockwaves through the industry, raising urgent questions about platform safeguards as hackers absconded with 4,223 ETH.
Details of the Exploit
The $8.4M Zoth hack unfolded early on March 21, when attackers compromised an admin key, gaining control of a Zoth proxy contract. According to CryptoSlate, the hacker upgraded the contract, enabling unauthorized transfers of $8.85 million in USD0++ stablecoins. These funds were then swapped into 8.3 million DAI before being converted to Ethereum and moved to an external wallet. Decrypt reported that this follows a $285,000 exploit on March 6, exposing recurring security flaws. Zoth has paused operations, placing its website in maintenance mode, and is collaborating with security experts to investigate, offering a $500,000 bounty for leads on the culprit.
The breach underscores the risks of proxy contracts in DeFi, where upgradability can backfire if keys are compromised. Crypto.news highlighted that the stolen assets’ conversion to Ethereum leverages its liquidity, a common tactic in DeFi hacks. X posts from users like @RetardioNews amplified the alarm, noting the protocol’s swift downtime. This incident joins a wave of 2025 exploits, with North Korean hackers recently laundering $1.5 billion from Bybit, per CoinDesk, signaling a persistent threat to crypto platforms.
Implications and Response
The $8.4M Zoth hack has intensified scrutiny on DeFi security, with experts warning of potential regulatory backlash. Coinfomania noted Zoth’s promise of a detailed report, but the repeated breaches—twice in under a month—cast doubt on its risk management. Despite the setback, Ethereum’s role as a hacker’s preferred asset underscores its market dominance. As Zoth works to mitigate losses, the crypto world watches closely, wary of further fallout from this high-stakes heist.
https://cryptoslate.com/ethereum-based-rwa-protocol-zoth-hacked-second-time-in-a-month-for-8-85-million/https://crypto.news/crypto-hack-leads-to-8-4m-loss-for-rwa-restaking-protocol-zoth/https://coinfomania.com/8-4m-zoth-hack-shakes-crypto-world/https://decrypt.co/260495/ethereum-defi-platform-zoth-hit-by-8-85-million-hack/https://www.coindesk.com/markets/2025/03/10/stablecoin-supply-tops-200b-as-u-s-sees-usdt-usdc-helping-keep-dollar-as-reserve-currency/ https://news.starlavinia.name.tr/crypto-vc-giant-1-billion-for-new-funds/
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