Unizen Takes Swift Action After Security Breach, Pledges Reimbursements
Decentralized finance (DeFi) protocol Unizen has responded quickly to a recent security breach that resulted in the loss of approximately $2.1 million in user funds. The platform has pledged to reimburse affected users who lost up to $750,000, aiming to restore confidence and uphold its commitment to user protection.
Unauthorized Access Security Breach Leads to Loss of $2.1 Million
The security breach was identified by blockchain analytics firm PeckShield on March 9. The firm discovered an “approve issue” within the Unizen DeFi platform, signaling unauthorized access and the drainage of over $2 million in funds. Following this discovery, security advisories were issued to users, urging them to revoke approvals to prevent further losses.
After investigation by blockchain security firm SlowMist, it was confirmed that the total losses amounted to around $2.1 million. The hacker exploited an external call vulnerability within the Ethereum-based contract, converting the stolen USDT to DAI. To prevent additional losses, users were advised to revoke any approvals associated with the hacker’s address.
Unizen’s Response and Cooperation with Law Enforcement
Unizen promptly acknowledged the incident and assured users that the team was working diligently to enhance platform security and prevent future breaches. The company established a dedicated form for affected users to address concerns and warned against communicating with unofficial Unizen accounts on social media platforms.
The platform also took proactive steps by initiating cooperation with law enforcement and forensic experts on March 10. Unizen reached out to the hacker through on-chain messages, urging them to return the stolen funds. Incentivizing cooperation, the company offered a 20% bounty as a token of appreciation for white-hat efforts.
Reimbursement Plan to Alleviate Impact on Users
While discussions regarding the bounty continued, Unizen implemented a reimbursement plan to alleviate the impact on affected users. On March 11, the company announced its intention to reimburse 99% of victims immediately. Founder and CEO Sean Noga personally loaned Unizen the majority of the funds required for these reimbursements.
The refund process began on March 11 for users who lost less than $750,000. Refunds will be distributed in either USDT or USD Coin (USDC). For users who lost amounts exceeding $750,000, Unizen assures a personalized resolution process. Additionally, the company released a video guide to educate users on reviewing and revoking approvals within the platform to minimize vulnerability to future exploits.
Unizen’s Commitment to Security and User Protection
Unizen’s chief technology officer, Martin Granström, disclosed that the platform has gathered sufficient evidence for a comprehensive post-mortem report. Third-party firms have been engaged to assist with the report. Granström assured users that an incident report would be released shortly and affirmed the company’s dedication to enhancing security measures and safeguarding user assets in the future.
As Unizen prepares to release its post-mortem report, its engineering team remains focused on restoring normal operations while bolstering security measures to protect user assets. The platform aims to regain trust and ensure the safety of its users’ funds.
Hot Take: Unizen Swiftly Addresses Breach and Commits to Reimbursements
In response to a recent security breach resulting in a loss of $2.1 million, Unizen has taken swift action by pledging reimbursements for affected users. The platform acknowledges the breach, cooperates with law enforcement, and offers a bounty for white-hat efforts to recover the stolen funds. Unizen’s commitment to user protection is evident in its reimbursement plan and efforts to enhance platform security. By providing a personalized resolution process and educational resources, Unizen aims to alleviate the impact on affected users and prevent future vulnerabilities. The company’s dedication to transparency is reflected in its post-mortem report, which will provide insights into the incident and outline measures taken to safeguard user assets. As Unizen works towards restoring normal operations, it continues to prioritize the safety and trust of its users.
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