Unizen Addresses Security Breach and Commits to Reimbursing Affected Users: A Comprehensive Overview
The decentralized finance (DeFi) protocol, Unizen, has recently undergone a significant setback as it experienced a security breach that resulted in the loss of approximately $2.1 million worth of user funds. This unfortunate event was detected on March 9, 2024, by blockchain analytics firm PeckShield, which identified an “approve issue” enabling unauthorized withdrawals from the platform.
Following PeckShield’s alert, security experts at SlowMist confirmed the extent of the losses and reported that the stolen funds had been converted from Tether (USDT) to dai (DAI).
Immediate Response: Communication with the Hacker and Law Enforcement
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Unizen responded swiftly to the breach by communicating directly with the hacker, proposing a 20% bounty for the return of the remaining stolen assets. Simultaneously, the protocol has been collaborating with law enforcement and forensic experts to trace the attacker’s identity. Although negotiations for the bounty are ongoing, Unizen has prioritized compensating the victims and announced that reimbursements would begin on March 11.
Compensation Plans and Distribution of Funds
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Unizen aims to cover losses for 99% of affected users, prioritizing those who lost $750,000 or less. The compensation will be distributed in Tether (USDT) or USD Coin (USDC), starting immediately, with a case-by-case approach for losses exceeding $750,000.
A Proactive Approach: Revoking Platform Approvals and Enhancing Security Measures
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Alongside the reimbursement announcement, Unizen released a video tutorial instructing users on how to revoke platform approvals to prevent future losses. Chief Technology Officer Martin Granström has highlighted that enough evidence has been collected for a post-mortem report and emphasized ongoing collaborations with third-party firms to enhance security measures.
A Promise of Transparency: Unizen’s Post-Mortem Report and Continued Efforts
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Granström has shared that they have collected an extensive amount of evidence for the post-mortem report and are working with third-party security firms and law enforcement to track down the identity of the hacker. Unizen will release a draft of the post-mortem report on Monday, March 11. The team’s commitment to transparency and collaboration with external experts underscores their dedication to addressing the security breach thoroughly.
In conclusion, Unizen has taken swift action following a security breach that resulted in approximately $2.1 million in user fund losses. The protocol is prioritizing compensating affected users and collaborating with law enforcement to identify the attacker while also taking proactive measures to prevent future breaches. Transparency and a commitment to enhancing security measures remain at the forefront of Unizen’s response to this unfortunate event.
