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DeFi Protocol Unizen Reimburses Users After Security Breach
Decentralized finance (DeFi) platform Unizen recently faced a security breach, resulting in the loss of approximately $2.1 million in user funds. The breach was flagged by blockchain analytics firm PeckShield, which reported an “approve issue” with the DeFi platform, leading to the draining of over $2 million. Following the exploit, the security company SlowMist estimated the losses to be around $2.1 million.
Reimbursement and Bounty Negotiations
In response to the breach, Unizen took swift action to address the situation. The protocol announced that it would reimburse 99% of the affected users, with refunds starting on March 11. Additionally, the company offered a 20% bounty to the hacker in exchange for returning the remaining stolen funds. It was also revealed that Unizen is collaborating with law enforcement and forensic experts to identify the perpetrator.
Founder’s Loan and Refund Process
Unizen’s Founder and CEO, Sean Noga, demonstrated commitment to the platform’s users by loaning funds to facilitate the refund process. Users who lost amounts below $750,000 will receive their funds back in either USDT or USD Coin. For those who lost more than $750,000, the protocol assured that the issue would be handled on a case-by-case basis.
Security Measures and Post-Mortem Report
Unizen’s chief technology officer, Martin Granström, emphasized the company’s dedication to enhancing security measures. He mentioned that they have already gathered evidence for a post-mortem report and are working with third-party firms to address the breach. Granström also committed to sharing an incident report and investing more in security for the future.
Conclusion
The security breach experienced by Unizen serves as a reminder of the ongoing challenges within the DeFi space. Despite the unfortunate incident, the platform’s proactive approach in reimbursing affected users and its commitment to strengthening security measures demonstrate a dedication to maintaining trust and integrity within the decentralized finance ecosystem.
📎 Read the original article on cointelegraph.com
