DeFi protocol Unizen users to receive compensation after $2,1 million hack

Payouts will be made in USDT or USDC stablecoins

11.03.2024 - 13:28

3 min

What’s new? On March 9, decentralized financial protocol Unizen lost $2,1 million in an exploit. According to experts at blockchain audit firm SlowMist, a hacker exchanged stolen USDT steablecoins for stablecoins DAI, but then did not move the assets to other addresses or any platforms. The Unizen team offered the hacker to return 80% of the funds to the project and keep 20% for himself as a reward, and began working with law enforcement and blockchain analysts to establish his identity.

Source: Twitter.com

What else is known? While negotiations with the hacker are still ongoing, the Unizen team announced on March 11 that it would “immediate” reimburse 99% of affected users. Thus, the project’s CEO and founder Sean Noga provided an interest-free loan from his own funds for this purpose.

Source: Twitter.com

Users who lost up to $750 000 in cryptocurrencies will be reimbursed as soon as possible. Compensations will be paid in USDT or USDC stablecoins.

As for customers with a larger amount of loss, the team “will handle these on a case by case basis with the aim to rectify these losses in as efficient a manner as possible, as well.”

The company also shared a video tutorial on how to review and revoke authorizations for wallet interactions with the platform to avoid further losses.

According to blockchain auditors PeckShield, the exploit was caused by “an approve issue” on the Unizen platform.

Source: Twitter.com

In early March, a hacker stole $8 million from the WOOFi exchange using an instant loan attack. In February, the Seneca protocol lost $6 million due to a bug in the smart contract approval mechanism. And in January, a hacker withdrew $3,4 million worth of ETH coins from the Gamma DeFi protocol.

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