Unizen Takes Swift Action to Address $2.1 Million Security Breach and Reimburse Affected Users
Decentralized finance (DeFi) protocol Unizen recently experienced a security breach, resulting in the loss of approximately $2.1 million in user funds. In response to this unfortunate incident, the platform has taken immediate steps to address the situation and reimburse affected users.
Swift Response: 99% of Affected Users to Be Reimburseed
The incident came to light on March 9 when blockchain analytics firm PeckShield identified a vulnerability, revealing that over $2 million had been drained from the platform. Users were advised to revoke approvals from the trade aggregator to prevent further losses (PeckShield, 2023).
Security company SlowMist estimated the exploit losses at $2.1 million and reported that the attacker had exchanged Tether for the stablecoin dai (SlowMist, 2023). In response to this breach, Unizen reached out to the hacker via an on-chain message, offering a 20% bounty in exchange for returning the remaining stolen funds.
Meanwhile, Unizen collaborated with law enforcement and forensic experts to identify the hacker. While negotiations for the bounty continued, the company prioritized refunding victims of the hack. On March 11, Unizen announced its plan to reimburse 99% of affected users, starting with those who lost less than $750,000 (Unizen, 2023).
Addressing the Hack and User Reimbursement
Founder and CEO Sean Noga stepped in, providing funds to facilitate the refunds. Eligible users will receive their reimbursements in either USDT or USD Coin, with the process starting immediately. For those who incurred losses exceeding $750,000, each case will be addressed individually (Unizen, 2023).
To help users mitigate further losses, Unizen released a video guide instructing them on how to review and revoke approvals within the platform (Unizen, 2023). The company’s chief technology officer, Martin Granström, assured stakeholders that evidence had been gathered for a post-mortem report and that the platform was collaborating with third-party firms to investigate the breach thoroughly (Granström, 2023).
Transparency and Commitment to Security
Granström emphasized Unizen’s commitment to transparency, promising to share an incident report and invest more in security measures moving forward (Unizen, 2023). By taking decisive action and demonstrating accountability, Unizen aims to restore user confidence in its platform and safeguard against future security threats.
As the DeFi space continues to evolve, incidents like these underscore the importance of robust security measures and proactive risk management strategies. While no system can guarantee absolute protection against cyber threats, DeFi protocols must remain vigilant and responsive to safeguard user assets and uphold the integrity of the ecosystem.
References:
– PeckShield (2023). [Tweet]. Retrieved from
– SlowMist (2023). Unizen ($UNI) 1.4 Million USDC Stolen by Contract Exploit. Retrieved from
– Unizen (2023). Statement on Recent Security Incident. Retrieved from
– Unizen (2023). Reimbursement Process for Affected Users. Retrieved from
– Granström, M. (2023). Unizen Incident Report Update. Retrieved from
