Unizen, the DeFi protocol, announces instant reimbursement following a $2.1M hack.

Unizen, a decentralized finance (DeFi) protocol, has declared that it will reimburse users who lost 750,000 or less “as soon as possible” following a security breach that resulted in approximately $2.1 million worth of user funds being lost. On March 9, blockchain analytics firm PeckShield identified an “approve issue” with the DeFi platform, revealing that over $2 million had already been drained. Users were advised to revoke approvals from the trade aggregator to prevent further losses. Security company SlowMist estimated that the attacker swapped Tether (USDT) for the stablecoin Dai (DAI), resulting in losses of around $2.1 million. In an attempt to recover the remaining stolen funds, the DeFi protocol offered the hacker a 20% bounty, while also collaborating with law enforcement and forensic experts to identify the attacker. While negotiations for the bounty are ongoing, Unizen promptly refunded victims of the hack, ensuring that 99% of affected users would be made whole. Unizen founder and CEO Sean Noga personally loaned funds to the company for this purpose, and refunds began on March 11. Funds will be returned in USDT or USD Coin (USDC). However, for those who lost more than $750,000, the DeFi protocol will handle the issue on a case-by-case basis. The company has also released a video guide demonstrating how users can review and revoke approvals within the platform to prevent further losses. Unizen’s chief technology officer, Martin Granström, confirmed that they have gathered enough evidence for a post-mortem report and are working with third-party firms on the matter. They plan to release an incident report soon and have pledged to invest more in security in the future.