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Community Calls Bluff as unshETH Negotiates Return of 90% Funds

Community Calls Bluff as unshETH Negotiates Return of 90% Funds

DeFi protocol unshETH lost $375,000 due to a compromise in private keys. The project is trying to negotiate the returns of the funds. Community calls the negotiations a bluff.

The decentralized finance (DeFi) protocol unshETH has been negotiating with hackers to return 90% of funds stolen following a hack.

While most DeFi hacks occur due to the smart contract’s vulnerabilities, unshETH lost the funds due to a private key compromise.

unshETH Negotiates With Hackers

The on-chain staking platform unshETH wrote a final message to hackers to return 90% of $375,000 stolen from the protocol. unshETH gave a deadline of June 3 for the return of the funds. It warned:

“We want to be clear, and this is not a bluff: we know who you and some people connected to you (friends) are, and we will absolutely move forward with law enforcement if you have not returned the money by the deadline above.

Over the weekend, another DeFi project, Jimbos Protocol, lost $7.5 million to the DeFi hack. Like unshETH, Jimbos is also trying to regain 90% of its funds while allowing hackers to keep 10% as a bounty. 

On Wednesday, it opened a bounty for community members who can track the hackers and retrieve back the funds. DeFi protocols lost over $19.69 million to exploits in May.

Community Backlash

The warning message received a negative reaction from the community. A Twitter user replied that the warning “sounds exactly like someone bluffing would say.” 

unshETH also faced criticism for targeting the hackers’ friends in the tweet. Community member Haym Salomon says, “openly threatening a hacker’s friends is a bar you (probably) don’t want to cross below.”

Twitter user LuloxEth responds to unshETH’s warning to hacker.

Private Key Compromise

On Thursday, after the compromise of private keys, the hackers siphoned away $375,000 worth of crypto from farm rewards and protocol liquidity.

However, the community members demanded specifics on how the keys were compromised. A Twitter user, “alec,” has accused unshETH of accidentally posting the private keys on GitHub.

Source: Twitter

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