Shezmu, a DeFi protocol, recently experienced a hack resulting in the theft of $5 million. The hacker exploited a vulnerability in one of Shezmu's vaults, allowing them to mint collateral and take out ShezUSD loans. Shezmu began negotiating with the hacker and ultimately agreed to a 20% bonus for the return of the stolen tokens. The hacker started returning the stolen assets, with assurances from Shezmu that the remaining funds would also be recovered. Shezmu has outlined a strategy to support impacted LPs, including an airdrop of 80% of the lost liquidity and selling debt tokens to redeem the remaining 20%. They have also activated recovery mode for their Balancer ShezETH pool. The protocol will publish a post-mortem report on the incident and implement measures to enhance security in the future.



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