UwU Lend's team has issued a substantial $5 million reward for anyone who can pinpoint the individual responsible for a recent exploit on the protocol. The team conveyed this message through an on-chain communication dated June 13, highlighting that the reward would be in Ether (ETH) and would be granted before any funds recovery or legal measures were initiated.
Within a short span, the DeFi Protocol encountered two exploits, both attributed to the same entity. The initial incident, identified as a price manipulation attack on June 10, led to losses of $20.3 million. Subsequently, another attack on June 13 siphoned over $3.7 million from various pools within the protocol, including uDAI, uWETH, uLUSD, uFRAX, uCRVUSD, and uUSDT, as reported by blockchain security firm Cyvers.
In response to the first attack, the UwU Lend team proposed a deal to the hacker, offering to return 80% of the stolen funds while allowing the hacker to retain the remaining 20% and assuring no legal action would be taken. The deadline for the hacker to respond was set for June 12. However, with no response from the hacker, the second exploit transpired.
In another communication to the hacker prior to the deadline, the team stated that if no response was received, the same bounty amount would be offered to anyone who could identify the hacker and aid in their conviction in court. The team declared their intent to extend the bounty to the public and grant the full 20% to the individual who could lead to the hacker's conviction.
Meanwhile, on June 13, the protocol announced the initiation of reimbursements to victims of the first attack. The platform disclosed that it had repaid all bad debt related to the Wrapped Ether (wETH) market, amounting to 481.36 wETH, worth over $1.7 million. In total, the protocol reimbursed over $9.7 million to affected parties.
Despite the substantial losses incurred, the native token of UwU Lend, $UWU, experienced a modest 20% decline to $2.51 in the past week, according to data from CoinGecko.
