​Euler Finance DeFi protocol loses more than $175 million in a hacker attack

What’s new? On March 13, the co-founder of the deBridge cross-chain protocol, Alex Smirnov reported that the De-Fi protocol Euler Finance suffered a flash loan attack and lost ~$175 million in Ethereum coins (88 752 ETH) and DAI stablecoins (34 million coins). Meanwhile, cybersecurity company CertiK cited a larger amount of damage. According to them, the attackers withdrew ~$196 million, including nearly $43 million in DAI and 93 800 in wrapped Ethereum (wETH).

.@eulerfinance just suffered from the flash loan attack and lost ~$175M (88,752 ETH + 34M DAI)https://t.co/b4skvQCW4k pic.twitter.com/jFqvZAG82t — deAlex (@AlexSmirnov__) March 13, 2023

What is DeFi?

DeFi, or Decentralized Finance, is a completely new stage in the development of the financial system

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Euler Finance is a lending protocol based on the Ethereum blockchain. The platform offers liquid staking derivatives (LSD). LSD is a relatively new type of token that allows stakeholders to increase potential profits by unlocking liquidity for their assets. As of March 13, the total value locked (TVL) in Euler Finance is $15,42 million, according to DefiLlama.

What else is known about the hack? BlockSec, which specializes in analyzing smart contracts, reported that Euler Finance lost ~$197 million.

3/ updated two more attack transactions. The total loss is around 197 Million USDhttps://t.co/ovUWiWlW2l — BlockSec (@BlockSecTeam) March 13, 2023

Meta Seluth analysts also said that the total loss has already exceeded $190 million, and the attackers are linked to a deflationary attack that took place a month ago. Thus, hackers used a bridge to transfer funds from the Binance Smart Chain (BSC) blockchain to Ethereum and launched the attack on March 13.

Euler Finance @eulerfinance is being attacked. It seems the attack continues and the total loss exceeds 190 million USD already. Will update the details later.Check the first attack tx:https://t.co/KPF6zzfTUW https://t.co/PCb3CT803D pic.twitter.com/LZQTTMhLkh — MetaSleuth (@MetaSleuth) March 13, 2023

Hedera blockchain halts due to hacker attack

Representatives of the network did not name the amount stolen as a result of the hack

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The Euler Finance team discovered the vulnerability and said it is currently working with security experts and law enforcement agencies to solve the problem.

We are aware and our team is currently working with security professionals and law enforcement. We will release further information as soon as we have it. https://t.co/bjm6xyYcxf — Euler Labs (@eulerfinance) March 13, 2023

In February, the USP stablecoin lost its peg to the dollar after the Platypus DeFi protocol was hacked. Hackers used flash loans for Avalanche (AVAX) tokens. The suspects in the hack were later detained in France.