Real-World Asset (RWA) re-staking protocol Zoth has suffered an exploitation that leads to more than $ 8.4 million in losses, leading the platform to put its site in maintenance mode.
On March 21, the blockchain security firm Cyvers That -flag A weak -suspected transaction with Zoth. The security firm said the protocol’s deployer wallet was compromised and that the attack had retreated more than $ 8.4 million in crypto assets.
The Blockchain Security Firm said that within minutes, the stolen properties were converted to Dai Stablecoin and moved to another address.
Cyvers added that the protocol’s website was maintained in response to the incident. In a security notice, the platform confirmed that it had a security violation. The protocol said it works to solve the problem as soon as possible.
The Zoth team said it worked with its partners to “lighten the impact” and solve the situation completely. The platform has pledged to publish a detailed report once its investigation is completed.
Since the hack, the attacks moved the fund and Replaced the owners of ether (Eth), According to Peckshield.
Hackers move stolen funds. Source: peckshield
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Hack is likely to be caused by leakage of admin privilege
In a statement, the Cyvers team said the incident features weaknesses in the intelligent contract protocols and the need for better security.
Cyvers alerted Senior SOC lead Hakan Unal to cointelegraph that a leakage to admin privileges was likely to be caused by hack. UNAL said about 30 minutes before the hack was noticed, a Zoth’s contract was upgraded to a malicious version that deployed a weakening address.
“Unlike the usual exploits, this method exceeds security mechanisms and has provided full control over user funds immediately,” said the security professional.
Cointelegraph security professional said this type of attack can be prevented by implementing Multisig contract upgrades to prevent single-point failures, adding timelocks to upgrades to allow monitoring and placing real-time alerts for admin role changes. Unal added that better key management is also advised to avoid unauthorized access.
While attacking is avoided, Unal believes that this type of attack can continue to be a problem with decentralized financial (DEFI). Cointelegraph security professional said the admin keys will remain a “main risk” in the Defi ecosystem.
“Without decentralized upgrading mechanisms, the attacks will continue to target privileged duties to occupy protocols,” Unal added.
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