Mozaic Hack: Insider Steals $2.1 Million, Moz Price Plummets by 75%

The post Mozaic Hack: Insider Steals $2.1 Million, Moz Price Plummets by 75% appeared first on Coinpedia Fintech News

Are you prepared for a jaw-dropping revelation?!

Mozaic FI, a major player in the crypto world, has just admitted to a massive theft. Around $2 million in cryptocurrency has vanished from its vaults, and the culprit’s identity is shocking.

A closer look at the security breach reveals a startling truth. It turns out that the thief was actually a Mozaic developer! Using a loophole in the security system, this insider managed to nab private keys by accessing a core team member’s data.

What’s been going on in the crypto world recently and are you safe? Read on to find out.

Cyber Alert!

Cybers Alerts, a trusted Web 3 security firm, sounded the alarm bells. They pointed out that Mozaic_Fi’s lax access control on the Arbitrum network paved the way for this hack. The thief made off with a staggering $2.1 million, funneling it straight to the MEXC exchange. Fortunately, steps are in place to recover the stolen funds.

ALERTToday, @Mozaic_Fi experienced a hack due to a loss of access control on #Arbitrum. Our system detected multiple unauthorized transactions in real-time!
Attacker has drained around $2.1M from vaults and transferred them to @MEXC_Official
Currently, funds are in custody… pic.twitter.com/erz4DNsnBF

— Cyvers Alerts (@CyversAlerts) March 15, 2024

Also Read: Crypto Hacks of the Week: Breaches, Scams, and Rug Pulls Rock the Market

Mozaic Jumps Into Action

Mozaic carried out a speedy resolution of the exploit upon knowing of the breach as notified by its security counterparts, including Hypernative and others. As the funds were tracked back and forth among exchanges, it was known that 90% of funds were transferred to centralized exchange MEXC and the remaining to Binance, after which the CEX froze them.

Market Impact

Amidst the chaos, an institutional investor panicked and sold off a large MOZ holding, triggering a domino effect of selling. This sent the price of $MOZ crashing down.

Peckshield has reported that the token fell more than 75% post the hack and is currently trading at $0.4491 at the time of writing. It was sad to see the price dropping as Mozaic had just recently celebrated its TVL, which had crossed $ 2 million in value.

#PeckShieldAlert #Slippage Our community contributor has detected that $MOZ #Mozaic has dropped -75% pic.twitter.com/5VCrC5yRaM

— PeckShieldAlert (@PeckShieldAlert) March 15, 2024

Despite the setback, Mozaic FI wants to assure everyone that key assets like the MOZ/xMOZ token and vault contracts remain safe and secure.

Read More: 10 Must-Have Altcoins to Amplify Your Portfolio Before the Next Crypto Surge!

Mozaic claims core functions are secure. Can they rebuild trust after this exploit?