Euler Finance hack follow-up – On March 13, the protocol Euler Finance was the victim of a flashloan attack. Result, more than $196 million stolen for what is to date the largest hack of 2023. Fortunately, the situation seems to be moving in the right direction with the gradual return of funds.
Euler Finance hack: twist on twist
Euler Finance is a DeFi protocol operating on Ethereum. This one was victim of a hack totaling $196 million in losses.
Quickly, the protocol teams began to negotiate with the hacker, without success at first.
Faced with the lack of cooperation shown by the hacker Euler reacted. Thus, the protocol announced a $1 million bounty for any information leading to the arrest of the hacker.
Finally, on March 18, the hacker seems to change strategy. The latter undertakes to return the funds, with a first transfer of 3,000 ETH. This transfer will be followed by an exchange of messages between the hacker and Euler Finance, relaunching negotiations.
Thus, he declared that he wanted “make it easier for everyone involved”. Moreover, he added that he did not have “the intention to keep what does not belong to him”.
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72% of funds returned
After reopening negotiations, the hacker and the Euler Finance teams seem to have reached an agreement.
Indeed, on March 25, the hacker carried out a new wave of transfers, in returning 51,000 ETH to Euler Finance.
A series of transfers which seems to be continuing, with three new transactions of 7,738 ETH each on March 27. These will then be followed by sending 10 million DAIs. In total, the hacker holds 20 million.
In total, the hacker has returned around 77,214 ETH so far, the equivalent of $133 million, plus the 10 million DAI.
Therefore, approximately 143 million dollars have so far been returned by the hackereither 72% of all stolen funds.
It is very likely that an additional 34 million will be sent in the coming days. The hacker, on the other hand, is likely to keep 10% of the stolen funds (about $19 million) as a bug bounty reward.
The Euler Finance protocol can consider itself lucky. Indeed, few DeFi hack stories end up with funds being returned. Hackers usually manage to slip through the cracks or are based in jurisdictions that do not practice extradition.
For example, project users Harvest Keeper who left with the crate probably won’t be so lucky. This project had surfed the wave of AI to finally steal nearly a million dollars from the coffers of the protocol.
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