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Hacker steals $8.4M from RWA restaking protocol Zoth

The world of decentralized finance (DeFi) has been rocked by yet another exploit, this time affecting the real-world asset (RWA) re-staking protocol Zoth. The platform, which allows users to stake their crypto assets and earn rewards, suffered a security breach resulting in over $8.4 million in losses. The incident has raised concerns about the security of DeFi protocols and the need for better protection measures.

The hack was first flagged by blockchain security firm Cyvers on March 21, when a suspicious transaction was detected on the Zoth platform. According to Cyvers, the protocol’s deployer wallet was compromised, and the attacker was able to withdraw millions of dollars worth of crypto assets. Within minutes, the stolen funds were converted into the stablecoin DAI and transferred to a different address.

In response to the incident, Zoth immediately put its website on maintenance mode and confirmed the security breach in a notice to its users. The platform is currently working to resolve the issue and has promised to release a detailed report once its investigation is completed. The team has also collaborated with its partners to mitigate the impact of the hack and recover the stolen funds.

However, the attackers have already moved the funds and swapped them into Ether (ETH), according to blockchain security firm PeckShield. This highlights the need for better security measures in DeFi protocols to prevent such attacks from happening in the future.

The Cyvers team believes that the hack was likely caused by a leak in admin privileges, which allowed the attacker to upgrade a Zoth contract to a malicious version. This gave them full control over user funds, bypassing the platform’s security mechanisms. The team suggests implementing multisig contract upgrades, timelocks, and real-time alerts for admin role changes to prevent such attacks.

Despite the potential for prevention, the security professional also believes that admin key compromises remain a major risk in the DeFi ecosystem. Without decentralized upgrade mechanisms, attackers will continue to target privileged roles to take over protocols. This highlights the need for better key management and security measures in the DeFi space.

As the DeFi industry continues to grow and attract more users, it is crucial for protocols to prioritize security and implement robust protection measures. Otherwise, incidents like the Zoth hack will continue to occur, damaging the trust and credibility of the DeFi space.

Bitcoin NFTs, layer-2 and restaking hype ‘completely gone’

A Bitcoin layer-2 executive explained how Bitcoin narratives that were “overhyped” have now wholly vanished while the ecosystem develops. In a Cointelegraph interview, Bitlayer co-founder Charlie Hu laid out three Bitcoin narratives that he believed were overhyped. This included narratives that surrounded Ordinals, layer-2s and re-staking. According to Hu, one of the overhyped narratives in Bitcoin was non-fungible tokens (NFTs). The executive told Cointelegraph that while inscriptions may have gone “to the moon,” Hu said the era is “completely gone.” CryptoSlam data shows that in the first quarter of 2024, Bitcoin NFTs had a volume of $1.4 billion. In 2025 Q1, the volume is only at $280 million, showing an 80% drop. The executive believes that the 1,000x days of Bitcoin NFTs may be over and that people can’t expect similar “crazy” price performances anymore.Are Bitcoin layer-2s running out of steam? Apart from Bitcoin NFTs, Hu told Cointelegraph that the hype around Bitcoin layer-2 and Bitcoin re-staking has also declined among venture capitalists. Hu told Cointelegraph that at least 80 layer-2 networks aimed to get funded at the beginning of 2024 when the layer-2 narrative was strong. The executive said many projects pitched their ideas to investors, the media and different communities. Hu said that while there was some hype, this was “definitely over.” Many other crypto executives and entrepreneurs resonate with Hu’s point of view about the dying hype around layer-2 ecosystems. On Feb. 20, Stacks co-founder Muneeb Ali said the “honeymoon phase” for Bitcoin layer-2s is over. The executive said that most projects will cease to exist as their initial excitement fades.Meanwhile, Hu also told Cointelegraph that a third “overhyped” narrative was Bitcoin re-staking. He said that at the moment, there are only two or three projects still surviving after the peak of the narrative’s hype phase in 2024. While some hyped narratives started to fade, Hu believes there are many things to look forward to in the growing Bitcoin ecosystem. The executive said that while layer-2s are a great narrative, they see it more as an engine that powers Bitcoin’s decentralized finance (DeFi) ecosystem, which could allow holders to explore yield opportunities. Hu told Cointelegraph: “Bitcoin layer-2s are providing architecture as a programmable, trust-minimized kind of infrastructure that could provide yield for the Bitcoin whale holders or institutions. That’s a very important narrative. I think we’ll expand more and more with the use cases with adoption.”Related: Bitcoin volatility hits 3.6% amid heightened market uncertaintyBitcoin DeFi is yet to take offMeanwhile, Dominik Harz, the co-founder of hybrid layer-2 Build on Bitcoin (BOB), told Cointelegraph that Bitcoin layer-2s should be seen as a long-term play. “Looking at Bitcoin Layer-2s through a short-term lens misses the point. Hype cycles come and go, but lasting developments in crypto, like Bitcoin itself, are inherently long-term plays,” Harz said. The executive also believes that Bitcoin DeFi has not yet reached its full potential. “Bitcoin DeFi hasn’t even really taken off yet. We’re very early. Only 0.3% of Bitcoin’s market cap is active in DeFi right now compared to 30% for Ethereum,” Harz told Cointelegraph. Harz pointed out this was a 100x discrepancy, saying it would decrease rapidly as Bitcoin DeFi explodes. The executive also said layer-2s are necessary technological advancements for Bitcoin DeFi to hit the market. Max Sanchez, the chief technology officer of layer-2 protocol Hemi Labs, also believes that Bitcoin layer-2s are not losing steam. He told Cointelegraph that the space is entering a maturation phase where fundamentals matter. Sanchez said that many early projects in the Bitcoin layer-2 space brought technology from Ethereum without adapting it to Bitcoin’s unique architecture “in a way that truly extends Bitcoin.”Sanchez, who works on a hybrid project connecting to Ethereum, also said that building a layer-2 in just one silo and forgoing interoperability with Ethereum-based protocols is a “false notion.” Magazine: Memecoins are ded — But Solana ‘100x better’ despite revenue plunge

Bitcoin speculative appetite declines as investors seek safety

Speculative appetite is vanishing from the crypto markets, as investors are looking for safer digital asset investments following the recent wave of memecoin scams and macroeconomic uncertainty.Bitcoin’s hot supply metric, which measures the Bitcoin (BTC) aged one week or less, is down over 50%, from 5.9% at the end of November to just 2.3% on March 20, Glassnode data shows.The metric’s decline signals an investor shift to safer investment positioning amid the recent market volatility, according to Ryan Lee, chief analyst at Bitget Research.Bitcoin hot supply metric. Source: Glassnode Global trade tensions and fluctuating market dynamics are making investors reconsider their strategies, the analyst told Cointelegraph, adding:“During uncertain times, investors are not only seeking security but are also focused on rational decision-making. In many instances, that rational choice is represented by Bitcoin.”“This trend isn’t solely rooted in fear, it also reflects a more pragmatic approach to investing,” explained Lee.Related: Bitcoin experiencing ‘shakeout,’ not end of 4-year cycle: AnalystsThe stablecoin supply ratio (SSR), which measures the ratio between Bitcoin and stablecoin supply, also suggests that investors are still hesitant to take on significant new positions.BTC SSR ratio, 1-year chart. Source: GlassnodeThe SSR ratio stood at an over four-month low of 8, last seen at the beginning of November 2024, when Bitcoin was trading at $67,000, just before the post-election rally took BTC to a new all-time high of $109,000.Historically, SSR values below 10 are considered low, indicating that there is relatively low stablecoin buying power among investors, compared to Bitcoin’s market cap.The cautious crypto investor positioning aligns with the sentiment among traditional market participants, according to Enmanuel Cardozo, market analyst at Brickken real-world asset (RWA) tokenization platform.The market analyst told Cointelegraph:“US stock market trends often set the tone for risk-on assets like crypto, and right now, although the macro picture is still uncertain, these corrections are normal and just highlight where the real value lies as the market continues to mature and educate itself.”Asset performance post-Trump administration takeover. Source: Thomas FahrerDespite the growing investor caution, Bitcoin outperformed all major global assets since US President Donald Trump’s election, including the stock market, equities, US treasuries, real estate and precious metals.Related: Whale closes $516M 40x Bitcoin short, pockets $9.4M profit in 8 daysSpeculative appetite is “fading” among crypto investorsThe cooldown in Bitcoin’s hot supply metric shows faltering speculative appetite, according to technical analyst Kyledoops, who wrote in a March 21 X post:“Speculative appetite is fading, and the market is cooling off.”“This means fewer fresh coins in circulation, reduced liquidity, and lower market participation,” added the analyst.Despite the current lack of risk appetite, analysts remain optimistic on Bitcoin’s price trajectory for the rest of 2025, with price predictions ranging from $160,000 to above $180,000.Magazine: ETH may bottom at $1.6K, SEC delays multiple crypto ETFs, and more: Hodler’s Digest, March 9–15

XRP price chart hints at 75% gains next as SEC ends lawsuit against Ripple

XRP (XRP) has been on a strong upward trend in the past two weeks, with a 30% increase in price. This surge has been driven by a rebound in the overall cryptocurrency market and the resolution of Ripple’s long-standing legal battle with the US Securities and Exchange Commission (SEC).

The recent price action of XRP also indicates the formation of a symmetrical triangle pattern, a classic bullish continuation setup. This pattern typically occurs after a strong uptrend and is characterized by a consolidation within converging trendlines. According to technical analysis, this setup is likely to result in a breakout above the upper trendline, potentially leading to a 75% increase in price by June.

However, a drop below the lower trendline could invalidate this bullish setup and push XRP towards a bearish target of $1.28. This target is obtained by subtracting the maximum height of the triangle from the potential breakdown point at $2.35.

The positive technical outlook for XRP is also supported by recent developments in the cryptocurrency’s fundamentals. The SEC’s decision to drop its appeal against Ripple and the launch of the first CFTC-regulated XRP futures in the US have boosted market sentiment and increased liquidity for the asset.

However, Ripple still faces a legal hurdle in the form of an injunction that restricts the company from selling XRP to institutional investors. This could potentially limit Ripple’s ability to distribute XRP directly to banks and financial institutions, hindering its growth potential.

In conclusion, while XRP’s technicals and fundamentals are currently pointing towards a bullish outlook, investors should conduct their own research and be aware of the potential risks involved in cryptocurrency investments.

South Korea eyes KuCoin, BitMEX in crypto exchange crackdown

South Korea is cracking down on crypto exchanges that have allegedly operated without adhering to the country’s financial regulations. According to a report by local media outlet Hankyung, the Financial Intelligence Unit (FIU) of the Financial Services Commission is considering sanctions against exchanges that have not reported as virtual asset service providers (VASPs) under the country’s Specified Financial Information Act.

The FIU is currently investigating a list of exchanges and consulting with related agencies to determine appropriate sanctions, such as blocking access to the exchanges. Among the exchanges under scrutiny are BitMEX, KuCoin, CoinW, Bitunix, and KCEX, which are accused of providing services to South Korean investors without going through the country’s compliance process.

Under South Korean laws, operators of crypto sales, storage, brokerage, and management are required to report to the FIU. Failure to comply can result in criminal penalties and administrative sanctions. The FIU is also working with the Korea Communications Standards Commission to block access to the exchanges on the list.

In addition to foreign exchanges, South Korean crypto exchanges are also facing scrutiny over suspicions of financial misconduct. Bithumb, one of the largest exchanges in the country, was recently raided by prosecutors following allegations that its former CEO embezzled company funds to purchase an apartment. Bithumb has denied these allegations, stating that the CEO had already taken a loan to repay the funds.

There have also been rumors of intermediaries being paid to list projects on Bithumb and Upbit, another major South Korean exchange. While Upbit has denied these rumors and demanded the media outlet to disclose the list of projects that paid brokerage fees, the incident has raised concerns about the transparency and fairness of the listing process.

As South Korea continues to crack down on non-compliant exchanges and investigate potential financial misconduct, the country’s crypto industry is facing increased scrutiny and regulation. This highlights the importance of adhering to financial regulations and maintaining transparency in the crypto space.

Trump’s crypto czar meets UAE’s national security adviser on crypto, AI

White House crypto and AI czar David Sacks was among a number of Trump administration officials who recently met with United Arab Emirates officials to discuss emerging technologies and UAE’s potential plans to increase its investment in the United States. Sheikh Tahnoon Bin Zayed Al Nahyan, the Gulf nation’s national security adviser and brother of the country’s president, said in a March 20 X post that he had spoken with Sacks about AI’s impact, “the expanding role of digital currencies” along with “the investment opportunities emerging at their convergence.”US President Donald Trump hosted Tahnoon for dinner at the White House on March 18 and posted on his Truth Social platform a day later that he and senior US officials discussed with Tahnoon “ways for our countries to increase our partnership for the advancing of our economic and technological futures.”Tahnoon (left) meeting with Trump (right) in the Oval Office. Source: Donald TrumpThe exact details of Tahnoon’s multiple discussions were not made public, but Bloomberg reported on March 19 that people familiar with his meeting with Trump said he planned to talk about technology, energy and increasing the UAE’s investment in the US.Multiple posts on Tahnoon’s X account show him meeting Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent to discuss trade and investment between the two nations, along with chatting with White House cost-cutting czar Elon Musk via video call to discuss government systems.He also spoke about AI with tech executives, including Oracle co-founder Larry Ellison, BlackRock CEO Larry Fink, Microsoft CEO Satya Nadella and Nvidia CEO Jensen Huang.David Sacks (left) meeting with Tahnoon (right) to discuss crypto and AI. Source: Tahnoon Bin Zayed Al NahyanBloomberg reported that Tahnoon planned to discuss how the UAE could gain easier access to computer chips after the Biden administration restricted exports on them in 2023 and to note the country’s plans to build tech infrastructure on US soil. Related: Eric Trump joins Metaplanet’s strategic board of advisersTahnoon is the chair of the investment firm MGX, which reportedly plans to throw $7 billion into a $500 billion private-led project called “Stargate” to build AI data centers across the US, which Trump announced just days after returning to the White House.MGX, which invested $2 billion into Binance earlier this month, is a small part of a $1.5 trillion empire that Tahnoon controls, which includes two of the UAE’s sovereign wealth funds, the country’s largest bank, First Abu Dhabi Bank, and the AI development firm G42.Magazine: Trump’s crypto ventures raise conflict of interest, insider trading questions 

Australia outlines crypto regulation plan, promises action on debanking

Australia’s government, under its ruling center-left Labor Party, has proposed a new crypto framework regulating exchanges under existing financial services laws and has promised to tackle debanking.It comes ahead of a federal election slated to be held on or before May 17, which current polling shows is shaping up to a dead heat between Prime Minister Anthony Albanese’s Labor and the opposing Coalition led by Peter Dutton.The Treasury Department said in a March 21 statement that crypto exchanges, custody services and some brokerage firms that trade or store crypto will come under the new laws.The regime imposes similar compliance requirements as other financial services in the country, such as following rules safeguarding customer assets, obtaining an Australian Financial Services Licence and meeting minimum capital requirements.Australia’s Treasury says its new crypto regulations have four priorities. Source: Australian Department of the TreasuryIn August 2022, the government initiated a series of industry consultations to draft a crypto regulatory framework.“Our legislative reforms will extend existing financial services laws to key digital asset platforms, but not to all of the digital asset ecosystem,” the Treasury said in its statement.Small-scale and startup platforms that don’t meet specific size thresholds will be exempt, along with firms that develop blockchain-related software or create digital assets that aren’t financial products.Payment stablecoins will be treated as a type of stored-value facility under the Government’s Payments Licensing Reforms; however, some stablecoins and wrapped tokens will be exempt.“Dealing or secondary market trading in these products will be not treated as a dealing activity, and platforms where they are traded will not be treated as operating a market simply because of that trading activity,” the Treasury said.As part of its crypto agenda, Albanese’s government has also promised to work with Australia’s four largest banks to better understand the extent and nature of de-banking.There will also be a review into a central bank digital currency and an Enhanced Regulatory Sandbox in 2025, allowing businesses to test new financial products without needing a license.Related: May election could open floodgates to institutional crypto: OKX Australia CEOAlbanese’s government intends to release a draft of the legislation for public consultation. However, a change of government could be on the horizon with a looming federal election, a date for which is yet to be called.Dutton’s center-right Coalition had earlier promised to prioritize crypto regulation if it wins the election.The latest YouGov poll published on March 20 shows the Coalition and Labor neck in neck for a two-party preferred vote.The Coalition leads for topline voting intention, while Albanese continues to lead as preferred prime minister. Source: YouGovCaroline Bowler, the CEO of local crypto exchange BTC Markets, said in a statement shared with Cointelegraph that the areas of reform are sensible and would keep Australia competitive with global peers.However, she thinks there “will be additional detail required on capital adequacy and custody requirements.”“We need to ensure that these requirements aren’t overly burdensome for business investment in Australia,” Bowler said. Kraken Australia’s managing director, Jonathon Miller, said there is an “urgent need for bespoke crypto legislation” to address the existing confusion and uncertainty in the country’s industry.“We believe that by establishing a clear crypto regulatory framework and mitigating problems like debanking, government can remove the barriers hampering growth in the Australian economy,” he said. Magazine: Elon Musk’s plan to run government on blockchain faces uphill battle