Unizen to Reimburse Users After Losing $2.1 Million in Hack

Unizen DeFi Protocol Sends On-Chain Message to Attacker, Offers 20% Bounty for Return of Stolen Funds

Unizen DeFi protocol to offer instant reimbursement following $2.1M hack.

Decentralized finance (DeFi) platform, Unizen, has announced that it will reimburse its users who lost up to $750,000 after suffering a security breach that resulted in the loss of approximately $2.1 million in user funds. In a show of good faith, the company is working diligently to make affected users whole as soon as possible. Let’s take a closer look at the incident and the steps being taken to address it.

The Hack and Reimbursement Efforts

On March 9, blockchain analytics firm PeckShield reported an “approve issue” with the Unizen DeFi platform, saying that over $2 million had already been drained. In response, users were urged to revoke the approvals from the trade aggregator to prevent further losses. It was estimated that the attacker swapped Tether (USDT) for the stablecoin Dai (DAI), resulting in losses of about $2.1 million.

Acknowledging the severity of the situation, Unizen sent an on-chain message to the hacker offering a 20% bounty in exchange for returning the remaining stolen funds. The protocol is also collaborating with law enforcement and forensic experts to identify the hacker behind the attack. However, negotiations for the return of the funds are still ongoing.

While the recovery efforts continue, Unizen has taken swift action to refund the victims of the hack. In a tweet on March 11, the company announced that it would make 99% of the affected users whole as quickly as possible. The remaining reimbursements will be distributed to the same wallets that were affected. Despite the urgency, Unizen is handling each distribution individually with great care and attention to detail.

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Rebuilding Trust and Future Improvements

To facilitate the refund process, Unizen founder and CEO Sean Noga personally loaned funds to the company. Users who lost amounts below $750,000 will have their funds returned, with the refund process starting on March 11. The company will provide reimbursements in either Tether (USDT) or USD Coin (USDC). However, for users who lost more than $750,000, Unizen will address their cases on an individual basis.

To prevent similar incidents in the future, Unizen has shared a video guide demonstrating how users can review and revoke approvals within the platform to avoid further losses. The company is also committed to enhancing security measures and investing more in security going forward.

Q&A: What You Might Be Wondering

Q: How did the security breach occur in the first place? A: The breach was due to an “approve issue” that allowed the attacker to drain funds from the platform. Unizen has since addressed the vulnerability and is working on strengthening its security measures.

Q: Will all users receive full reimbursement? A: Unizen has committed to making 99% of the affected users whole. However, for users who lost more than $750,000, their cases will be handled individually.

Q: What are the steps being taken to prevent future hacks? A: Unizen is investing more in security and has provided a comprehensive video guide to help users review and revoke approvals within the platform. They are also working on a post-mortem report to analyze the incident and improve their security protocols.

Looking Ahead

While the recovery efforts are ongoing, the incident serves as a reminder of the importance of robust security measures in the DeFi space. Unizen’s commitment to making its users whole and their dedication to improving security are positive steps towards rebuilding trust. As the industry continues to evolve, it is essential for platforms to prioritize security and proactively address vulnerabilities.

In conclusion, Unizen’s swift reimbursement efforts and commitment to bolstering security demonstrate their dedication to their users’ financial well-being. By learning from this incident and implementing stronger security measures, Unizen aims to ensure a safer DeFi ecosystem for all.

References:

• PeckShield Twitter
• Etherscan
• Unizen Twitter
• USDT
• DAI
• USDC
• Martin Granström Twitter

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