Ethereum-Based Zoth Exploited for $8.4M in Second Hack, Funds Swapped to DAI and ETH

Zoth, an Ethereum-based real-world asset (RWA) restaking protocol, has been exploited for approximately $8.4 million due to a leakage of admin privileges. The attack involved the tampering of a proxy contract named 'USD0PPSubVaultUpgradeable' by a suspicious address, leading to the unauthorized withdrawal of funds. The logic contract was replaced by a malicious contract, facilitating the exploit.

The stolen funds, initially in the form of USD0++, were swapped for 8.3 million DAI and then converted into 4,223 ETH, which is currently held in a wallet address linked to the hacker. This incident marks the second security breach for Zoth within a month, following a previous exploit that resulted in a loss of $285,000.

Zoth's team is actively investigating the situation with security partners and has promised to release a detailed report on the incident. The company did not disclose how the private key was compromised but emphasized efforts to mitigate the impact and resolve the issue.

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