On September 21, the yield protocol known as Shezmu successfully managed to recover nearly $5 million in stolen funds just hours after engaging in negotiations with the hacker responsible for the breach. Earlier that day, Chaofan Shou, who serves as the co-founder of the blockchain analysis company Fuzzland, issued a cautionary alert regarding a compromise in a Shezmu repository.
The details surrounding this incident remain uncertain, as it is unclear whether it was an intentional act or a legitimate hacking attempt. However, Shou clarified that approximately $4.9 million worth of cryptocurrency was indeed taken during this breach. In response to the incident, Shezmu confirmed that its ShezmuUSD (ShezUSD) stablecoin vault had been directly targeted.
The protocol took a proactive approach by urging the hacker to return the misappropriated funds in exchange for a bounty, assuring no legal repercussions would follow. The hacker, however, demanded a 20% bounty instead of the initially proposed 10%, a negotiation that Shezmu ultimately accepted. Within a few hours of this agreement, Shezmu's efforts to recover the stolen funds began to yield positive results, although as of the latest updates, not all of the funds had been restored.
The Shezmu team took the critical step of advising investors to limit their interactions with the protocol's Oasis vault until further updates can be provided, underscoring the importance of caution amid uncertainty in the cryptocurrency landscape. This incident serves as a critical case study in the ongoing battle between blockchain security protocols and the ever-evolving threat of cybercrime, emphasizing the need for robust strategies in crisis management..