Mozaic Finance DeFi Protocol Suffers $2 Million Hack

A hacker extracted assets worth approximately $2 million from the vaults of the yield farming protocol Mozaic Finance. The project team has confirmed the incident.

MOZAIC SECURITY INCIDENT

What Happened
• About 12 hours ago, ~$2M in funds from the Mozaic vaults were drained by a malicious actor
• This individual was a Mozaic developer who had illegally obtained the private keys of a security module by compromising the data of a core team…

— Mozaic ? (@Mozaic_Fi) March 15, 2024

According to Mozaic’s statement, the breach was carried out by a former developer of the DeFi protocol. Aware of recent security updates, the perpetrator compromised the data of a team member and obtained the private key of a security module.

The funds were transferred to the cryptocurrency exchanges Binance and MEXC. The latter froze more than 90% of the stolen assets. The Mozaic team is working with platforms to recover the stolen funds.

Cybersecurity firms and law enforcement agencies are conducting an investigation. Mozaic employees have been denied access to internal systems pending the completion of an internal review.

The team emphasized that a major institutional investor sold MOZ tokens amid the price drop. His actions led to a further decline in the coin’s value.

According to CoinGecko, the price of MOZ fell from $0.16 to $0.04. At the time of writing, the token had slightly recovered to $0.07. Over the past week, MOZ has lost 46.6%.

In February, experts at Immunefi estimated the damage to cryptocurrency projects from hacks and scams at $67 million.

In March, the decentralized exchange WOOFi lost $8.75 million due to an exploit of the swap service in the Arbitrum L2 network.