Mozaic Fi’s Private Key Theft Results in $2.1 Million Loss; Token Plummets by 75%

Mozaic FI, a yield aggregator operating on Arbitrum, has made a shocking revelation that a malicious hacker has stolen approximately $2 million worth of cryptocurrency from its vaults. The hacker, identified as a Mozaic developer, exploited a security loophole in the system to gain access to the private keys of a core team member.

Cyvers Alerts, a Web 3 security firm, detected the security breach and reported that Mozaic_Fi had lost control over access on the Arbitrum network. The attacker managed to drain around $2.1 million from the vaults and transferred the funds to the MEXC exchange. However, it has been assured that the exchange will return the funds once the necessary procedures are completed.

Upon being notified of the breach by security counterparts such as Hypernative, Mozaic responded swiftly to resolve the exploit. The funds were traced as they moved between exchanges, with 90% of the stolen funds ending up at the centralized exchange MEXC and the remainder at Binance, where they were frozen.

The hack had significant market implications, as an institutional investor holding a large MOZ position decided to exit the market due to the depreciation in the price of the MOZ coin and the decline in total value locked (TVL). This triggered panic selling, leading to a cascading effect of massive sell-offs and a substantial drop in the price of $MOZ.

Peckshield, a security firm, reported that the token plummeted by over 75% following the hack and is currently trading at $0.4491. This was a disappointing turn of events for Mozaic, considering its recent celebration of surpassing $2 million in TVL.

Despite the breach, Mozaic FI assures stakeholders that key components such as the MOZ/xMOZ token, vault contracts, and AI remain uncompromised and secure.