Mosaic Finance was hacked for $2.4M in a private key deal

The production farm protocol Mosaic Financial was used on the Abitrum network on March 15, according to a statement from the protocol's development team. The group said the attacker had deposited all the stolen funds into the central crypto exchange MEXC and was “confident” the money would be returned.

Mosaic Finance is a decentralized finance and profit-enhancing protocol that runs on multiple blockchain networks. It says it employs artificial intelligence (AI) programs to maximize returns to investors.

Blockchain security firm Certike has issued an alert on X saying that the exploit has taken place. In an accompanying report to Cointelegraph, Certike said the attacker ran out of funds by calling the “bridgeViaLifi” contract, which is only called by developer wallets. Thus, “the cause of this incident appears to be private key compromise,” CertiK concluded.

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According to blockchain data, an account ending in 50eb called this function at 6:08 am UTC, resulting in 27 separate token transfers each of hundreds of thousands of dollars in stablecoins from one account to another, some of these tokens being the account that made the call. Certike said the total loss was more than $2 million.

Hacks and exploits continue to plague blockchain users. On March 9, decentralized finance protocol Unizen lost more than $2 million in external call exposure. In this case, the development team promised to compensate the victims immediately. On February 29, the lending app Seneca Finance was similarly hacked to the tune of more than $6 million.

In a March 15 Discord post, the Mosaic team expressed hope that the money would be returned through a legal process, with the proceeds of the alleged crime deposited into a central exchange.