The UwU Lend team has offered a $5 million reward for anyone who identifies the individual responsible for a recent exploit on the protocol.
In a June 13 on-chain message, the team noted that the bounty would be paid in Ether (ETH) and awarded before any funds were recovered or legal action was taken.
The DeFi Protocol had suffered two exploits in quick succession in the last three days, and the same entity is reportedly responsible for both. The first, which has been identified as a price manipulation attack, occurred on June 10 and resulted in $20.3 million in losses. The second attack happened three days later, on June 13, and over $3.7 million was drained from the protocol’s uDAI, uWETH, uLUSD, uFRAX, uCRVUSD, and uUSDT pools, according to blockchain security firm Cyvers.
Following the initial attack, the UwU Lend team had offered the hacker a deal to return 80% of the stolen funds and keep the remaining 20%, with the promise of not taking legal action. They set the deadline for a response from the hacker to June 12.
However, the hacker did not respond and instead conducted the second exploit.
In their previous message to the hacker, the team noted that if they fail to respond, they’ll offer the same bounty amount to the person who can identify the hacker in a way that leads to their conviction in the courts. In their words,
“If you choose not to partake in the voluntary return and complete the process by June 12 at 17:00 UTC, we will expand the bounty to the public and offer the full 20% to the person who can identify you in a way that leads to your conviction in the courts. We will pursue you from all angles.”
Meanwhile, the DeFi protocol announced on X yesterday, June 13, that it had begun reimbursing the victims of the first attack. The platform noted that it had repaid all bad debt for the Wrapped Ether (wETH) market, totalling 481.36 wETH, worth over $1.7 million. The protocol noted that it had reimbursed over $9.7 million to affected parties.
Despite the significant losses, UwU Lend’s native token, $UWU, has only fallen 20% to $2.51 in the past week, as reported by CoinGecko.
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