ChainCatcher reported, citing Cointelegraph, that yield protocol Shezmu recovered nearly $5 million of stolen funds within hours of successfully negotiating with the hacker. This morning, Chaofan Shou, co-founder of blockchain analytics firm Fuzzland, warned that a Shezmu repository had been compromised. While it's unclear whether the incident was intentional or a genuine hack, Shou confirmed that approximately $4.9 million worth of cryptocurrency was stolen in the process.

Shezmu subsequently confirmed that one of its ShezmuUSD (ShezUSD) stablecoin pools had been targeted and proactively urged the hacker to return the funds in exchange for a bounty and without any legal consequences. The hacker responded to this request by demanding a 20% bounty instead of the initial 10%, which Shezmu agreed to.

Within hours, Shezmu began to recover the stolen funds, although not all funds had been recovered at the time of writing. The Shezmu team urged investors to limit interactions with the protocol's Oasis vaults until further updates are provided.