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DeFi Protocol Unizen Compensates Users After $2.1 Million Hack
Following a recent platform hack that resulted in the loss of over $2.1 million in user funds, the decentralized finance (DeFi) protocol Unizen has taken swift action to compensate affected subscribers. The protocol has declared that it will provide reimbursement to users who lost $750,000 or less, with plans to do so as soon as possible.
Security Breach and Response
PeckShield, a blockchain analytics company, reported that over $2 million was lost on the DeFi network on March 9, highlighting an “approve issue.” In response to the breach, security firm SlowMist observed that the attacker had replaced the stablecoin Dai with Tether, estimating the exploit losses to be approximately $2.1 million.
Compensation and Collaborative Efforts
Despite ongoing discussions regarding a potential bounty for the return of the remaining stolen funds, Unizen has promptly initiated the reimbursement process for victims of the hack. The company has announced its intention to restore full functionality to 99% of impacted users and has already begun issuing refunds to those who lost less than $750,000. These refunds will be provided in USDT or USD Coin, with the protocol addressing losses above $750,000 on a case-by-case basis.
Collaborative Measures and Future Plans
Unizen has emphasized its collaboration with forensic specialists and law enforcement to identify the hacker, while also working with external companies to gather data for a post-mortem report. The CEO has pledged to increase security investments and has committed to sharing an incident report in the near future.
Preventative Measures and User Education
To prevent future losses, the company has released video instructions to educate customers on how to examine and withdraw approvals from the platform, aiming to empower users with the knowledge to safeguard their funds.
Conclusion
The swift response and proactive measures taken by Unizen in the aftermath of the hack demonstrate a commitment to protecting its users and mitigating the impact of security breaches. As the company continues to collaborate with industry experts and law enforcement, it remains focused on enhancing security measures and providing transparency to its user base.
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