Shezmu Recovers Nearly $5M in Assets After Hack

by Giorgi Kostiuk

2 years ago

Hack Confirmation
Negotiations with the Hacker
Shezmu Team's Reaction

Crypto lender Shezmu has managed to recover nearly $5 million worth of assets after they were lost earlier in a hacking breach.

Hack Confirmation

Chaofan Shou raised the alarm on X that the lender’s storage vault had been compromised, and it was not certain whether this was a genuine hack or a rug pull. $ShezUSD tokens worth $4.9 million were stolen in the attack.

.[@ShezmuTech](https://twitter.com/ShezmuTech?ref_src=twsrc%5Etfw) has been hacked / rugged. ~$4.9M worth of $ShezUSD stolen. One of their vaults used collateral that can be minted by anyone. With the free collateral, the attacker can borrow an arbitrary amount of $ShezUSD.Chaofan Shou

Negotiations with the Hacker

Later, the Shezmu team confirmed that the ShezmuUSD vault was exploited and the funds were lost. The company urged the attackers to return the funds in exchange for a bounty, promising no legal repercussions. The team gave the attackers 24 hours to return the funds, with a 10% bounty offer.

Shezmu Team's Reaction

Following an on-chain discussion with the hacker, the team received 80% of the stolen funds back into its treasury. The team reminded the hacker that his wallet is linked to a KYC exchange and that if the hacker returns the funds, the incident will be considered a white-hat hack. A few hours after the incident, the team received the stolen Dai tokens into their wallet. First, the hacker sent 282.18 Ether, followed by 137 WETH. The team has urged its investors and protocol users to avoid interacting with the platform’s Oasis vault until further notice.

Update: An additional 137 WETH was recovered from the shezUSD white hat and returned to the Shezmu Treasury! As we continue to recover the remaining funds, please do not interact with Oasis until further updates. Thank you for your continued support.Shezmu

The Shezmu team is actively working to recover the remaining funds and taking measures to protect the platform in the future.

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