Zoth, a crypto startup, recently fell victim to a major heist, losing approximately $8.4 million in digital assets. The incident occurred on March 21, 2025, and it mainly involved USD0++ stablecoins. After the theft, the stolen assets were quickly converted into DAI and then into Ethereum (ETH). Zoth is currently working with partners to investigate the breach and recover the lost funds.
The breach stemmed from a compromised deployer wallet, which allowed hackers to gain access to Zoth’s systems. An admin privilege leak is blamed for the attack, which involved a malicious upgrade of the “USD0PPSubVaultUpgradeable” proxy contract. This upgrade was deployed from a suspicious address. A security firm, Cyvers Alerts, had previously detected and reported the suspicious transaction, raising concerns about the security of Zoth’s operations. The attack was attributed to an admin privilege leak, highlighting the vulnerabilities within their security protocols. Zoth experienced a significant loss of $8.4 million as a result of this breach, emphasizing the ongoing risks within the crypto industry. The incident underscores the fact that over 25,000 cryptocurrencies exist, making it challenging to monitor security across the entire market.
A compromised deployer wallet led to a significant breach at Zoth, exposing critical vulnerabilities in their security protocols.
In the aftermath of the breach, Zoth’s website was taken offline for maintenance. The company issued a security notice to inform users about the situation and is actively working to protect user funds. A detailed report on the incident will be released once the investigation is complete.
Zoth, founded in January 2023 by Pritam Dutta and Koushik Bhargav, had previously secured $4 million in funding. The company focuses on real-world assets (RWAs) and tokenized liquid notes through its core product, ZeUSD.
The recent hack adds to ongoing concerns about security in the cryptocurrency space, especially after a series of significant breaches in February 2025, including the Bybit hack and others.
The crypto market is feeling the impact of this heist, contributing to ongoing volatility. Investors are becoming increasingly cautious as security issues mount. Regulatory scrutiny is expected to increase in light of these recent events, leaving the future of cryptocurrencies uncertain.
Tracking the stolen funds remains a challenge due to the conversions into ETH.
