How Did Shezmu Recover $5M After a Major Crypto Vault Hack?
- Shezmu recovered $5 million after negotiating with hackers for stolen funds.
- Key leak suspected in the breach, affecting ShezETH and ShezUSD.
The crypto market continues to face multiple hacking incidents, with the latest targeting Shezmu, a leveraged yield protocol. On September 21, Chaofan Shou, co-founder of blockchain analytics firm Fuzzland, raised alarms regarding a compromised storage vault belonging to Shezmu, leading to the theft of approximately $4.9 million in cryptocurrencies. The nature of the incident remains unclear, with speculation around whether it was a rug pull or a genuine attack.
Shezmu confirmed that its ShezmuUSD (ShezUSD) stablecoin vault was exploited, prompting immediate action. The protocol offered the hacker a 10% bounty reward in exchange for the return of 90% of the stolen funds, with no legal repercussions.
However, the hacker countered, demanding a 20% bounty, which Shezmu eventually agreed to. The protocol set a 24-hour window for compliance, with the threat of involving law enforcement if the hacker refused.
Recovery Of Funds
Within hours, Shezmu successfully recovered 282.18 ETH and 137 Wrapped Ether (WETH), valued at over $5 million, following negotiations with the hacker. However, as of the latest update, not all stolen funds had been returned. The team advised users to avoid interactions with its DApp until further notice.
Update: An additional 137 WETH was recovered from the shezUSD white hat and returned to the Shezmu Treasury!https://t.co/K2AnPkme9F
Shezmu (@ShezmuTech) September 21, 2024
As we continue to recover the remaining funds, please do not interact with Oasis until further updates. Thank you for your continued support
Meanwhile, Web3 security firm Ancilia, Inc. also reported that Shezmus ShezETH token had been attacked. And that it happened potentially due to a key leak. This resulted in the unauthorized minting of 9,900 ShezETH tokens, which were traded for 332 ETH, amounting to $880,000. ShezmuUSD was also compromised, possibly connected to the same key leak, though details remain uncertain.
The Shezmu team continues to investigate the breach, urging investors to remain cautious and await further updates on the status of the remaining funds.
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Read more: https://thenewscrypto.com/how-did-shezmu-recover-5m-after-a-major-crypto-vault-hack/
Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
