Using the Profit Protocol, Shazmu successfully negotiated with the hackers and recovered nearly $5 million in stolen funds in just a few hours.
On September 21, Chaofan Shou, co-founder of blockchain analytics firm Fuzzland, warned of Shezmu’s compromised vault. While it is unclear whether the incident was a hoax or a real hack, Shou confirmed that around $4.9 million worth of cryptocurrency was stolen in the process.
source: Show Chaofan
Shezmu later confirmed that one of its ShezmuUSD (ShezUSD) stablecoin vaults had been compromised and actively urged the hacker to return the funds in exchange for a bounty without legal liability.
source: Shezma
Shezmu requested via an on-chain message that 90% of the stolen funds be returned within 24 hours. The protocol only involves law enforcement if the hacker decides not to comply.
Chezmou Hacker Asks for 20% Bounty on White Hats
The hacker initially demanded a 20 percent bounty instead of the 10 percent he had offered, and Shezmu agreed.
Shezmu’s team negotiates with the hacker to get the stolen funds back. Source: Etherscan
Within hours, Shezmu began receiving stolen Dai (DAI) tokens from her wallet. The hacker initially returned 282.18 Ether (ETH) to the protocol, and then refunded 137 Wrapped Ether (WETH).
source: Shezma
However, as of this writing, not all funds have been recovered, and the Shezmu team has urged investors to limit their interactions with the protocol’s Oasis vault until further updates are available.
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WazirX is struggling to trace the $235 million stolen funds.
Meanwhile, Indian cryptocurrency exchange WazirX has made no progress in tracing the $230 million it lost 60 days after being hacked.
WazirX has not admitted to the hack and continues to blame its custodian Liminal for the loss of funds. Refuting the claims, Liminal announced on September 9 that it had undergone an independent audit by multinational professional services firm Grant Thornton.
As a result of the audit, Liminal said it found no evidence that the cyberattack originated from Liminal’s web app, backend, or frontend structure.
source: Coin Switch
Most recently, WazirX faced legal threats from its customers, most notably from another rival Indian cryptocurrency exchange, CoinSwitch, which took legal action against Wazir to recover 2% of the funds, worth approximately $6.2 million.
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