Hacker Steals $8.4M in Crypto from Protocol

A hacker exploited a security vulnerability to steal $8.4 million from the RWA restaking protocol Zoth on March 19, 2025, causing significant turmoil in the crypto space.

This breach underscores the ongoing security challenges faced by decentralized finance platforms and has prompted discussions on improving protocol defenses within the cryptocurrency community.

Hacker Exploits Smart Contract of Zoth for $8.4M

The hacker’s breach of Zoth involved exploiting a smart contract vulnerability. This theft highlights ongoing risks within decentralized systems, with $8.4 million compromised from users, sparking a push for stronger security measures. Zoth’s development team is actively investigating the incident and confirms the loss of $8.4 million. Community stakeholders are urging for prompt protocol updates to enhance security and prevent further breaches.

Pritam Dutta, CEO, Zoth, said, “Zoth aims to unlock the $2 trillion tokenized fixed-income market by building a permissionless layer for on-chain and off-chain RWAs.”

Ethereum Price Dips as Market Reacts to Security Breach

Data from CoinMarketCap reveals Ethereum’s current price at $1962.92 with a market cap of approximately $236.79 billion. Despite a 3.09% weekly gain, Ethereum saw a daily decline of 1.38% amid the breach, highlighting market sensitivity to security incidents. This event could prompt regulatory scrutiny and drive investments in security technologies. Emerging trends suggest a growing need for resilient infrastructures amidst increasingly sophisticated cyber threats in the cryptocurrency sector.

DeFi Vulnerabilities: $6 Million Hack from Last Year

Similar breaches, such as last year’s $6 million hack on another DeFi protocol, emphasize ongoing security vulnerabilities in blockchain technology. These incidents necessitate a heightened focus on protocol fortification. Experts from Kanalcoin suggest the incident underscores a critical need for advanced security frameworks. Drawing on past trends, they advocate investing in technological innovations to mitigate evolving cybersecurity risks in decentralized finance.