Unizen Promises Swift Reimbursements following $2.1M Security Breach
Summary:
After losing approximately $2.1 million in user funds due to a security breach, decentralized finance protocol Unizen is promising swift reimbursements to its affected users. The company is closely cooperating with authorities and digital forensic experts to identify the attacker, while a 20% bounty has been offered for the safe return of the stolen assets. Unizen CEO, Sean Noga, has provided funds for the reimbursements which started rolling out on March 11. The company is set to enhance its security following the incident.
Unizen, a decentralized finance (DeFi) protocol, is assuring its clients they will be reimbursed swiftly following a recent security breach, in which the platform lost approximately $2.1 million in user funds. The loss was detected by PeckShield, a blockchain analytics company, on March 9, when it reported an "approve issue" with Unizen, warning users to withdraw their approvals promptly to prevent further theft. SlowMist, a cybersecurity firm, estimated the losses to be around $2.1 million and confirmed that the attacker had converted Tether (USDT) to the stablecoin DAI (DAI).
In an effort to recover the stolen funds, Unizen made an on-chain offer to the hacker, promising a 20% bounty in exchange for the safe return of the assets. Meanwhile, Unizen is cooperating with local authorities and experts in digital forensics to identify the perpetrator.
On March 11, Unizen notified victims of the quick refund action they have taken. Their statement revealed a plan to completely compensate 99% of affected users promptly, while the remainder will receive their reimbursements in the same wallets immediately. The company's CEO, Sean Noga, has lent funds to the platform for this purpose, and reimbursements started on March 11.
For losses exceeding $750,000, Unizen stated it will deal with these situations on an individual basis. The company also provided a video tutorial instructing users on how to revoke approvals to avoid additional losses. Further, Martin Granström, Unizen's CTO, confirmed in an interview that enough evidence has been gathered for a post-mortem report, with third-party firms assisting in the investigation. The firm is set to release a detailed incident report soon and pledge to enhance their security in the times to come.
Published At
3/11/2024 11:03:28 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.