TL;DR
- Unizen, a decentralized finance (DeFi) protocol, experienced a security breach resulting in a loss of about $2.1 million. The company has committed to compensating the affected users and has taken steps to bolster platform security to prevent future breaches.
- The company began collaborating with law enforcement and forensic experts on March 10 to track down the perpetrator. Unizen also offered a 20% bounty as a reward for white-hat efforts to recover the stolen funds.
- On March 11, Unizen announced its plan to immediately reimburse 99% of the victims. The refunds, which will be made in either USDT or USD Coin, underscore Unizen’s commitment to protecting its users and maintaining the integrity of the platform.
Following a security breach that led to a loss of about $2.1 million, Unizen, a decentralized finance (DeFi) protocol, has committed to compensating the users affected. The breach was detected by PeckShield, a blockchain analytics firm, which identified an “approve issue” in the DeFi platform, indicating unauthorized access and the extraction of over $2 million in assets.
Dear unizen community,
After an arduous weekend, we have made the strategic decision to make over 99% of those affected from our community completely whole with immediate effect.
Our CEO / Founder, Sean Noga, has decided to loan Unizen the majority of the immediate… pic.twitter.com/d9GyaH3j8Y
— unizen (@unizen_io) March 11, 2024
Unizen responded to the breach by acknowledging the incident and assuring users of their ongoing efforts to bolster platform security and prevent future breaches. The company has set up a dedicated form for affected users to express their concerns and has warned against interacting with unofficial Unizen accounts on social media platforms.
On March 10, Unizen began collaborating with law enforcement and forensic experts to track down the perpetrator. The company proactively sent on-chain messages to the hacker, urging them to return the stolen funds. This event was marked by a display of possession, evidenced by a transaction from the foundation’s wallet to the hacker’s Ethereum wallet.
The Role of Unizen’s Founder and CEO, Sean Noga, in the Refund Process
Unizen stressed its continued cooperation with law enforcement and called for the immediate return of funds to avoid further legal consequences. The company offered a 20% bounty as a reward for white-hat efforts as an incentive for cooperation. As discussions about the bounty continued, Unizen took proactive measures to mitigate the impact on affected users.
On March 11, the company announced its plan to immediately reimburse 99% of the victims, with a focus on a careful, individualized approach to the reimbursement process. Sean Noga, Unizen’s Founder and CEO, has provided funds to the company to refund victims. Users who lost less than $750,000 will receive 99% of their funds back, with the refund process starting on March 11.
The refunds will be made in either USDT or USD Coin. This incident underscores the potential risks associated with DeFi platforms. However, Unizen’s prompt and transparent response reflects its commitment to protecting users and maintaining the integrity of the platform.
