How Did Shezmu Recover $5M After a Major Crypto Vault Hack?
Within hours, Shezmu successfully recovered 282.18 ETH and 137 Wrapped Ether (WETH), valued at over $5 million, following negotiations with the hacker
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.
