$8.4M Zoth Hack Shakes Crypto World: Stolen Assets Converted To Ethereum

Another exchange in the crypto fraternity witnessed a hack this week. Zoth, a Real World Asset (RWA) staking protocol, suffered from a theft that has sent shockwaves in the investors’ community. The exploit led to $8.4 million in losses, resulting in Zoth eventually pausing operations. The DeFi security breach was first identified when crypto security company Cyvers flagged suspicious activity on the Zoth platform.

Preliminary investigation revealed that the perpetrators exploited a weak link in Zoth’s smart contract structure that allowed them to make unauthorized withdrawals. While key details have not yet been divulged, speculations suggest that this hack may have stemmed from a bug in the smart contract or a private key may have been compromised. The breach that was detected a few days ago raises concerns over recurring DeFi security breaches and the vulnerabilities that attackers continue to take advantage of. 

Zoth Hack Confirmed: Post on X Reveals First Response

The Zoth team has acknowledged the breach of security and has reassured its users of swift action. They are currently working with crypto security firms to trace the missing funds. As a cautionary measure, the platform has paused proceedings and the website has gone under maintenance. In a post on X, Zoth issued a statement saying they are actively investigating the incident and are committed to reclaiming the assets. They also urged users to stay cautious.

Security Notice

Our system has experienced a security breach. We’re actively investigating the incident and taking all necessary steps to resolve it as swiftly as possible.

We are working closely with our partners to mitigate the impact and fully resolve the issue. A detailed…

— ZOTH (@zothdotio) March 21, 2025

The team also said that they were looking for ways to “mitigate the impact” and find a resolution for the problem. The firm also promised to publish a detailed report once the investigation is complete. Since the hack, according to some sources, the attackers have moved the funds and swapped the assets into Ether, a highly stable and liquid crypto asset.

Ethereum has now been a component of several DeFi security breaches, providing high liquidity, and making it easy for attackers to convert stolen funds into Ether before laundering them into other assets. Also, the lack of a ‘Freeze-In’ mechanism allows seamless transition, a bane and a boon for Ethereum now. Given that, let’s take a quick look at how Ethereum has been performing after this update. 

Ethereum Price Analysis of Last 24 Hours: ETH Price Dips Below $2000 

Ethereum kicked off the day strong at $2,066, marking the end of an uptrend from the previous day. However, a death cross at 00:15 triggered a sharp decline, bringing ETH down to $2,023 within half an hour. A golden cross around 2:00 UTC tried to reverse the price trend but could only muster a short uptrend. By 8:00 AM UTC, ETH had slid further to $2,003 as buying pressure faded. Another death cross at 9:20 pushed the price down to $1,978.

The market then saw a period of heavy fluctuations. A golden cross briefly lifted ETH to $2,008, but the momentum quickly faded. The EMAs fluctuated rapidly as the price saw sudden ups and downs. The price spiked upward again, going to $2,008.  But the indicators soon turned bearish, leading to a steep drop toward $1,953 at 15:00 UTC. Buyers attempted a slow recovery, but resistance at $2,000 proved too strong. As the initial surge from March 21 cooled, the ETH price settled into a gradual downtrend.

ETH Price Prediction: Can ETH Reclaim $2,000?

Ethereum currently is working just below $2,000, with weak buying pressure and no sustained upward movement. If ETH manages to break past $2,000 in the coming day, it could establish new support, setting the stage for further gains. However, without strong momentum, the price is likely to remain range-bound in the short term. Another fall from here could lead Ethereum to find support in the sub-$2,000 range, further slowing down its progress.