A hacker exploited the RWA restaking protocol Zoth on March 19, 2025, stealing $8.4 million and sparking discussions on security within the crypto space.
Zoth Protocol Vulnerability
The hacker exploited a vulnerability in Zoth's smart contract, resulting in the theft of $8.4 million. This highlights the persistent risks within decentralized systems. Zoth's development team is actively investigating the incident and confirms the significant loss. Community stakeholders urge prompt protocol updates to enhance security and prevent future breaches.
Impact on Ethereum Price
Data from CoinMarketCap shows Ethereum's current price at $1962.92 with a market cap of approximately $236.79 billion. Despite a 3.09% weekly gain, Ethereum experienced a 1.38% daily decline following the breach, highlighting the market's sensitivity to security incidents.
DeFi Vulnerabilities: Last Year's Case
Similar incidents, such as last year's $6 million hack on another DeFi protocol, underscore ongoing vulnerabilities in blockchain technology. Experts from Kanalcoin emphasize the critical need for protocol fortification and investment in innovative technologies to mitigate cybersecurity risks.
The Zoth incident has reignited discussions on DeFi protocol security. The community remains vigilant, stressing the importance of robust defenses in an evolving landscape.
