Shezmu Recovers Nearly $5 Million Stolen in Hack After Negotiation with Attacker

PANews reported on September 21st that yield protocol Shezmu successfully recovered almost $5 million worth of stolen funds within hours of negotiating with the hacker.

Earlier, Chaofan Shou, co-founder of blockchain analytics firm Fuzzland, warned that a Shezmu repository had been compromised. While it was uncertain whether the incident was intentional or a genuine hack, approximately $4.9 million worth of cryptocurrency was stolen in the process. Shezmu subsequently confirmed that one of its ShezmuUSD (ShezUSD) stablecoin pools was attacked and proactively urged the hacker to return the funds in exchange for a bounty and without facing any legal repercussions. The hacker responded to this request by demanding a 20% bounty instead of the initial 10%, which Shezmu agreed to pay.

Within hours, Shezmu began to gradually recover the stolen funds, though not all funds have been restored. The Shezmu team urged investors to limit interaction with the protocol's Oasis vault until further updates are provided.