Following a $2.1 million loss as a result of a security compromise, Unizen will begin compensating users with losses of $750,000 or less.
Unizen, a DeFi protocol, has promised to repay consumers after a security breach stole almost $2.1 million. Blockchain analytics company PeckShield found the hack on March 9 when it discovered an “approval problem” that permitted illegal withdrawals from the network.
In response to PeckShield’s warning, SlowMist’s security team verified the hefty loss of around $2.1 million and noted the theft of Dai tokens from Tether (USDT).
Unizen promptly contacted the hacker in reaction to the incident and offered a 20% reward for the safe recovery of the remaining stolen assets. At the same time, the protocol has been connecting with forensic specialists and police enforcement in an effort to identify the assailant. Unizen said that payments will begin on March 11, despite the fact that talks for the prize are still underway. This was in response to the hack’s victims.
Using funds that Unizen CEO and creator Sean Noga gave out, the protocol intends to compensate 99% of impacted customers, particularly those who lost $750,000 or less.
Losses beyond $750,000 will be handled on an individual basis, although compensation will be provided in USDT or USD Coin (USDC) instantly. In addition to the news of compensation, Unizen also shared a video lesson with instructions on how to remove platform permissions and avoid such losses in the future. According to Chief Technology Officer Martin Granström, there is sufficient information to do a post-mortem study. He also said that they are continuing to collaborate with third-party organizations to improve security.
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