Using the yield protocol, Shezmu recovered nearly $5 million in stolen funds just hours after negotiating with the hacker. On Sept. 21, the co-founder of blockchain analytics firm Fuzzland, Chaofan Shou, raised concerns about a breach in Shezmu’s storage vault. While it was unclear whether the incident was a rug pull or a legitimate hack, Shou confirmed that approximately $4.9 million in stolen cryptocurrencies.
Shezmu confirmed that hackers had breached one of its ShezmuUSD (ShezUSD) stablecoin vaults. In response, they reached out to the hacker, offering a reward if the stolen funds were returned and promising no legal consequences.
Liminal clears name after WazirX hack audit
Through an on-chain message, Shezmu asked for 90% of the funds to be returned within 24 hours, warning that they would involve law enforcement if the hacker didn’t cooperate. The hacker responded to the offer by asking for a 20% reward instead of the originally proposed 10%, and Shezmu agreed to the new terms.
Within a few hours, the stolen Dai tokens appeared in Shezmu’s wallet. The hacker first sent back 282.18 Ethereum and later followed up with an additional 137 Wrapped Ether (WETH). However, not all the stolen funds have been returned as of yet. The Shezmu team has advised investors to avoid interacting with the protocol’s Oasis vault until further notice.
Indian crypto exchange WazirX is still struggling to recover its $230 million stolen funds two months after the hack. Instead of acknowledging the breach, WazirX has been pointing fingers at its custodian, Liminal, for the lost money. In response, Liminal denied the accusations and revealed on Sept. 9 that it had completed an independent audit by global firm Grant Thornton to clear its name.
The audit revealed no sign of the cyberattack coming from Liminal’s web applications or its front-end and back-end technical systems. Recently, WazirX has been dealing with legal issues from its customers, including a significant case involving its competitor, CoinSwitch. The rival exchange sued WazirX to recover about 2% of its funds, roughly $6.2 million.
