Key takeaways:
- Following a platform hack that lost over $2.1 million in user funds, the DeFi protocol Unizen declared that it would compensate its subscribers who lost 750,000 or less.
- The protocol also stated that it is currently collaborating with forensic specialists and law enforcement to identify the hacker.
Following a platform hack that resulted in the loss of over $2.1 million in user funds, the decentralized finance (DeFi) protocol Unizen declared that it would compensate its subscribers who lost 750,000 or less “as soon as humanly possible.”
PeckShield, a blockchain analytics company, said that over $2 million had already been lost on the DeFi network on March 9 and noted an “approve issue.”
In order to prevent additional losses, the security company advised consumers to cancel their authorization with the trading aggregator. Security firm SlowMist observed that the attacker substituted the stablecoin Dai for Tether, estimating the exploit losses to be approximately $2.1 million.
One day later, the hacker received an on-chain message from the DeFi protocol promising a 20% bounty in return for returning the remaining stolen cash. The protocol also stated that it is currently collaborating with forensic specialists and law enforcement to identify the hacker.
Although the bounty discussions are still in progress, the DeFi protocol promptly reimbursed the hacking victims. The company declared on March 11 that it would restore full functionality to 99% of the impacted users as soon as feasible. They stated:
“Reimbursement for the rest of those will be given to the same wallets affected starting immediately. While we intend to start distributions today, we are going through each distribution individually in a slow, careful and methodical manner,”
According to the statement, Sean Noga, the CEO and founder of Unizen, lent money to the business so that it could reimburse the victims of the hack. Refunds for users who lost less than $750,000 will begin to be issued on March 11.
Funds will be returned by the company in USDT or USD Coin. The DeFi protocol did state that they would address losses above $750,000 on a case-by-case basis. In order to prevent such losses, the company has released video instructions that teach customers how to examine and withdraw approvals from the platform.
Martin Granström, the chief technical officer of Unizen, also stated on X that the company is collaborating with outside companies on the issue and has already gathered sufficient data for a post-mortem report. The CEO pledged to increase future security investments and stated that they would share an incident report shortly.
