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Unizen's Swift Response: Reimbursing Users After $2.1M Hack

Unizen announces immediate reimbursement for users affected by a recent exploit, demonstrating their commitment to security and customer satisfaction in the DeFi space.

Decentralized finance (DeFi) platform Unizen faced a challenging weekend as it fell victim to an exploit, resulting in the loss of approximately $2.1 million in user funds. However, the platform has swiftly responded, announcing immediate reimbursement for affected users.

Exploit and Response

Blockchain analytics firm PeckShield identified an "approve issue" with Unizen on March 9, alerting users to revoke approvals from the trade aggregator to prevent further loss. The exploit resulted in over $2 million being drained, prompting Unizen to act quickly. The protocol sent an on-chain message to the attacker, offering a 20% bounty for returning the remaining stolen funds. Additionally, Unizen has engaged law enforcement and forensic experts to identify the hacker.

Reimbursement Process

Unizen has taken a proactive approach to reimburse affected users. Founder and CEO Sean Noga has loaned funds to the company to refund victims. Users who lost less than $750,000 will receive 99% of their funds back, with refunds commencing on March 11. The refunds will be in either USDT or USD Coin.

For users who lost more than $750,000, Unizen will handle the issue on a case-by-case basis. The platform has also shared a video guide to help users review and revoke approvals within the platform to prevent further losses.

Future Plans and Security Measures

Unizen's chief technology officer, Martin Granström, has assured the community that they are working on a post-mortem report with third-party firms. The platform plans to share an incident report soon and has committed to investing more in security to prevent future breaches.

The swift response and commitment to reimbursement demonstrate Unizen's dedication to its users' security and satisfaction. As the platform continues to enhance its security measures, users can expect a safer DeFi environment on Unizen.