Mozaic Finance suffers 2.4M Dollars breach due to private key compromise

Crypto News– On March 15, the Yield farming protocol Mozaic Finance fell victim to exploitation on the Arbitrum network, as stated by the protocol’s development team. They announced that the attacker had transferred all stolen funds to the centralized crypto exchange MEXC and expressed confidence in the return of these funds.

Mozaic Finance suffers 2.4M Dollars breach due to private key compromise

Mozaic Finance, known for its decentralized finance and yield-optimization protocol across various blockchain networks, utilizes artificial intelligence (AI) programs to enhance investor returns.

CertiK, a blockchain security firm, raised an alert on X regarding the exploit. According to their report shared with Cointelegraph, CertiK suggested that the attacker exploited the “bridgeViaLifi” contract, accessible only via a developer wallet, indicating a compromise in private key security as the root cause of the incident.

Blockchain data revealed that an account ending in 50eb initiated the exploit at 6:08 am UTC, executing 27 token transfers, each moving substantial amounts of stablecoin funds between accounts. CertiK estimated the total losses to exceed $2 million.

Instances of hacks and exploits persist in the blockchain realm. On March 9, Unizen, a decentralized finance protocol, suffered a loss of over $2 million due to an external call vulnerability. The Unizen development team promptly committed to compensating affected users. Similarly, on Feb. 29, Seneca Finance, a lending app, fell victim to exploitation, resulting in a loss exceeding $6 million.

In a Discord post on March 15, the Mozaic team expressed optimism regarding the recovery of funds through legal avenues, considering that the alleged proceeds of the crime had been deposited into a centralized exchange.