Cozy Finance Drained of $170k in Second Major Optimism Hack

Cozy Finance faced another security setback this Monday as an attacker drained approximately $170,000 from the protocol. Security firm Blockaid first identified the breach, noting that the hacker moved 163,326 USDC.e across 63 different token transfers. The entire process took just 13 minutes, with the funds bridged out before the security alert could be issued.

This incident marks the second time Cozy Finance has been targeted on Optimism. A previous attack in August 2025 resulted in a loss of $427,000 due to flaws in the withdrawal code. Recent data from DefiLlama suggests this latest strike likely wiped out nearly all of the protocol's liquidity held on the Optimism chain.

The attacker appears to have been well prepared for the theft. On chain records show that the attack contract was deployed on September 2, five days before the funds were taken. While the current amount is smaller than some other recent DeFi hacks, the fact that the platform has been successfully targeted twice on the same network raises serious concerns about its security measures.

Market participants are currently keeping a close watch on the project's remaining assets. Security teams continue to monitor the attacker's wallet for further activity. The incident adds to a difficult week for decentralized finance protocols, as several other platforms have also reported significant losses due to various technical vulnerabilities.