Cozy Finance Struck Again: $170k Drained from Optimism

A second Cozy Finance exploit has drained $170,000 from its DeFi insurer on Optimism, just a year after a similar attack cost the protocol nearly $427,000. The attacker exploited a vulnerability in the withdrawal code and transferred funds out of the protocol within 13 minutes.

Cozy Finance's protection markets allow users to buy cover against DeFi failures. However, this exploit highlights the ongoing security risks in the decentralized finance (DeFi) space. In August 2025, an attacker took $427,000 from Cozy Finance on Optimism, and now another attack has repeated a similar loss.

The attacker's wallet drew its first funds from a Relay solver five days before the drain, suggesting that they had planned the exploit in advance. Blockaid detected the ongoing exploit and alerted the community, but the attacker managed to move most of the funds out of the protocol before being detected.