Zunami Protocol, a DeFi yield aggregation platform, has suffered a serious breach involving the loss of approximately $500,000 due to misuse of administrative privileges. The incident, which took place on May 14, was not the result of a typical exploit but rather the exploitation of a function embedded in the smart contract for emergency use.
According to blockchain investigators, the attacker gained access to the platform’s withdrawStuckToken() function—reserved for admin use—just minutes after assigning themselves the admin role. The function enabled the withdrawal of all collateral from the vaults backing Zunami’s synthetic assets: zunUSD and zunETH.
"The collateral for zunUSD & zunETH has been stolen. We are currently investigating," Zunami stated in a brief update.
The Exploit in Detail
The attacker initiated the attack by setting an admin role to their own address on May 14. Less than 10 minutes later, they invoked the admin-only withdrawStuckToken() function, withdrawing the entirety of user deposits from the vault. The stolen assets were then routed through Tornado Cash, obscuring their trail.
On-chain analysis conducted by multiple security experts, including PeckShield and blockchain researcher Vladimir S., confirms the loss to be just over $500,000.
What’s raising eyebrows is the timing: Zunami’s smart contracts had remained untouched for months, and the exploit came shortly after the admin role was re-initialized. The platform had also ceased offering incentives to users weeks prior, making the attack appear even more premeditated.
Lack of Transparency
The Zunami team has come under scrutiny for remaining largely silent for nearly three weeks after the incident. While users awaited a proper post-mortem or compensation plan, moderators in the project’s Discord threatened legal action against those raising concerns. No audit report or public analysis has been shared by the team since.
Security Lapses Raise Red Flags
Unlike common DeFi exploits involving flash loans or oracle manipulation, this breach resulted from a lack of basic security hygiene:
Single-address admin control
No multisig protection
Use of high-risk emergency functions in production
This type of design is becoming increasingly frowned upon as security expectations grow in decentralized finance.
Zunami Protocol’s latest exploit offers a critical lesson: access control is as important as code quality in smart contract systems. As the DeFi ecosystem matures, protocols will need to implement more robust security mechanisms such as multisig governance, restricted admin access, and thorough audit-backed reviews to prevent internal or external abuse.
FAQs
1. How much was stolen from Zunami Protocol?
Approximately $500,000 was withdrawn by an attacker via an emergency admin function.
2. Was it a technical vulnerability?
No. The attacker used a built-in admin function after gaining admin access—indicating poor access control rather than a smart contract bug.
3. Has Zunami responded to the exploit?
The team released a short message acknowledging the breach but has yet to provide a detailed breakdown or recovery roadmap.
4. Are user funds affected?
Yes. The vaults backing zunUSD and zunETH were emptied, meaning user assets are currently uncollateralized.
5. What’s the key security takeaway?
Admin functions must be tightly secured or removed altogether from production deployments. Multisig and real-time auditing are essential for modern DeFi platforms.
