Unizen Offers Instant Refund Following $2.1M Hack

Unizen Offers Instant Refund Following $2.1M Hack

Unizen Offers Instant Refund Following $2.1M Hack

Unizen faced a hack that resulted in a $2.1M loss as they announced reimbursement for affected members and offered a 20% bounty. 

In the aftermath of the platform being compromised, which resulted in the loss of around $2.1 million in user cash, the decentralized finance (DeFi) protocol known as Unizen announced that it would reimburse its members who had lost $750,000 or less “as soon as humanly possible.”

On March 9, PeckShield, the blockchain analytics company, reported that the DeFi platform had lost over $2 million, signaling an “approve issue” with the platform.

The security company strongly encouraged users to cancel their approvals from the trade aggregator to prevent any future losses. The security company SlowMist reported that the attacker switched to Tether, causing losses of approximately $2.1 million.

Unizen Offers 20% Bounty To The Hacker

The DeFi protocol delivered an on-chain message to the hacker the next day, promising a 20% bounty in Exchange for returning the remaining cash that had been stolen.

Furthermore, the protocol stated that they are already working with law enforcement and forensic professionals to identify the hacker in question.

Unizen Offers Instant Refund Following $2.1M Hack
On-chain message sent by Unizen to the hacker. Source: Etherscan

Although the bounty discussions are still in progress, the DeFi protocol will swiftly reimburses those affected by the hack.

The firm announced on March 11 that it would quickly restore the fund of 99 percent of the users who had been harmed. They will immediately distribute reimbursement to the same wallets that were affected.

We are going through each distribution individually in a cautious, careful, and methodical manner,” they stated. “We aim to start distributions today, but we are going through each one separately.”

Sean Noga, the founder and CEO of Unizen provided the company with a loan of money to reimburse those affected by the hack. Individuals who have suffered losses of less than $750,000 will be eligible to receive their funds back beginning on March 11. 

We will return the funds to the customer in USDT or USD Coin. The DeFi protocol informed individuals who lost more than $750,000 that they would handle the situation on an individual basis. 

In addition to the news, the company also distributed a video guide that instructs users on evaluating and rejecting approvals within the platform to prevent their losses from increasing further.

Martin Granstrom, Unizen’s chief technical officer, stated on X that the company has already gathered sufficient data for a post-mortem report and is already collaborating with third-party companies on the subject.

The executive announced that they would be sharing an incident report soon, and they also vowed to increase their security investments in the future.

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