Mozaic Finance loses $2.4M Due to Private key Breach

Mozaic Finance faced an exploit on March 15, with the team stating that the attacker deposited the stolen funds to the MEXC exchange.

According to a statement released by the team responsible for creating the yield farming protocol, Mozaic Finance, the protocol was exploited on the Abitrum network on March 15th.

The group asserts that the attacker has transferred all unlawfully obtained funds to the centralized cryptocurrency exchange MEXC and is “confident” in the recovery of these funds.

What is Mozaic Finance

Mozaic Finance is a system that optimizes yields while also providing decentralized financial services. It operates on multiple blockchain networks around the world.

To maximize returns to investors, it asserts that it uses programs powered by artificial intelligence (AI). The blockchain security company CertiK alerted X, confirming the execution of the exploit. CertiK asserted that the attacker drained funds using the “bridgeViaLifi” contract, which is only callable by a developer wallet.

Consequently, “it appears that a private key compromise was the root cause of this incident,” according to the conclusion reached by CertiK.

The data on the blockchain indicates that an account ending in 50eb called this function at 6:08 am UTC. This resulted in 27 distinct token transfers, each of which shifted hundreds of thousands of dollars worth of stablecoin from one account to another.

Some of these tokens ended up in the account from which the call was made. According to CertiK, the total damages amounted to more than two million dollars.

Hacks and attacks continue to plague users of blockchain technology. Over two million dollars were lost via the decentralized financial protocol Unizen on March 9 as a result of a vulnerability that was caused by an external call.

In such a scenario, the development team is committed to providing victims with rapid compensation. The lending app Seneca Finance fell victim to exploitation for more than six million dollars on February 29.

In a post on Discord on March 15th, the Mozaic team expressed their hope that a judicial process would retrieve the earnings of the suspected crime from a centralized exchange.