Unizen, a decentralized finance (DeFi) protocol, declared that it would repay users who lost $750,000 or less “as soon as humanly possible” after the network was compromised, resulting in a loss of around $2.1 million in user cash.
On March 9, blockchain analytics firm PeckShield reported a “approve issue” with the DeFi platform, claiming that more than $2 million had already been siphoned. The security firm recommended users remove the trade aggregator’s authorization to avoid further losses. SlowMist, a security startup, put the exploit losses at about $2.1 million, noting that the attacker exchanged Tether USDT$1.00 for stablecoin DAI DAI$1.00.
A day later, the DeFi protocol sends the hacker an on-chain message offering a 20% bounty for returning the remaining stolen cash. The protocol also stated that they are already working with law police and forensic professionals to identify the hacker.
While bounty negotiations are still underway, the DeFi protocol was swift to refund hack victims. On March 11, the company announced that it would reimburse 99% of the impacted users as quickly as possible.
“The remaining funds will be reimbursed to the affected wallets immediately. “While we expect to start distributions today, we will go through each one separately, slowly, deliberately, and meticulously, they wrote.
According to the announcement, Unizen Founder and CEO Sean Noga provided the company with funding to reimburse the breach victims. Users who have lost less than $750,000 will receive reimbursements beginning March 11.
The company will refund money in USDT or USD Coin (USDC$1.00). However, for those who lost more than $750,000, the DeFi protocol stated that the issue would be handled on a case-by-case basis. Along with the statement, the company provided a video tutorial on how to examine and cancel approvals within the platform to minimize further losses.
Martin Granström, Unizen’s chief technology officer, also stated on X that they have already gathered enough data for a post-mortem report and are collaborating with third-party firms on the issue. The executive vowed to share an incident report as soon as possible and to invest more in security in the future.
