TechFlow news, on March 22, according to an official announcement, the Zoth protocol recently suffered a targeted hacker attack. The attacker gained unauthorized access to the deployment account through a malicious proxy upgrade and upgraded the protocol to a malicious contract, thereby draining funds from the isolated vault holding USD0++ collateral.
On-chain data shows this was a meticulously planned attack, with the hacker funding wallets and deploying contracts weeks in advance, making multiple failed attempts before successfully executing the attack yesterday. After the attack, the stolen funds were quickly transferred and exchanged into DAI, then converted into ETH.
The Zoth team is actively investigating the incident and collaborating with professionals to track the stolen funds. Meanwhile, they have engaged Crystal Blockchain BV to conduct a full investigation into the event. To aid recovery of the stolen assets, Zoth has announced a public bounty totaling $500,000, rewarding any individual who provides effective information leading to fund recovery.
Notably, with assistance from asset issuance partners, 73% of the TVL (Total Value Locked) on the Zoth platform has been immediately secured. The Zoth team commits to full transparency and will release a detailed report together with partners in the coming weeks.
