The platform’s team shared information about the attack with US and UK law enforcement officials

​Euler Finance DeFi Protocol will return $200 million stolen in hacking

14.03.2023 - 09:30

380

3 min

What’s new? The team of the Euler Finance DeFi protocol has engaged analytics companies TRM Labs and Chainalysis to help investigate the hack and work to return the stolen funds. The project’s representatives assured that they stopped a direct attack on the platform and shared information about it with law enforcement agencies in the United States and Great Britain. According to the latest figures, the project lost about $200 million as a result of the attack.

Euler Finance is a lending protocol based on the Ethereum blockchain. The platform offers liquid staking derivatives (LSDs). LSD is a relatively new type of token that allows stakeholders to increase potential profits by unlocking liquidity for their assets. As of March 14, the total value locked (TVL) in Euler Finance is $10,27 million, according to DefiLlama.

What is known about the attack? Omniscia, one of Euler’s audit partners, analyzed the attack and shared its details. For example, it was revealed that the attackers used vulnerable code that allowed them to create an unsecured token debt position by donating funds to protocol reserves. As a result, the hackers were able to liquidate these accounts and profit from the liquidation bonuses.

The Euler team said the vulnerability was not discovered during the audit and remained on the network for eight months until it was exploited on March 13.

France arrests suspects in Platypus DeFi protocol hack

France arrests suspects in Platypus DeFi protocol hack

During the investigation, €210 000 in cryptocurrencies were seized

Read further

Sherlock, a crypto audit platform, of which Euler is a client, confirmed the ~$200 million hack on its Twitter account. The company verified the root cause of the hack, helped Euler file a $4,5 million claim, and made a $3,3 million payment.

On March 10, the Hedera blockchain was suspended for 24 hours due to a hacker attack. The developers implemented an update to fix a vulnerability that allowed hackers to use the mainnet’s smart contract service code to transfer service tokens from victims’ wallets.

Subscribe to Getblock Magazine and stay up to date with the latest news from the world of cryptocurrencies and the digital economy