- The Euler Finance hacker returned the stolen $200 million and apologized.
- The million-dollar reward campaign stopped receiving new information.
- Victims regained access to their funds.
On March 13th, lending protocol Euler fell victim to hackers, causing nearly $200 million in digital assets to be stolen, including dai (DAI), wrapped bitcoin (wBTC), staked ether (sETH), and USD coin (USDC).
However, this particular exploit stands out since the attacker offered to pay the money back and gave an apology shortly after the incident occurred, resulting in a relatively swift resolution.
New Developments in the Euler Saga
The decentralized lending platform announced via Twitter on Monday, April 3rd that the cybercriminal behind the $200M destabilization had returned all “recoverable funds.”
Data from Arkham Intelligence confirmed the report, revealing that the crypto address linked to the breach transferred 10,580 Ether (ETH), worth approximately $19M, to Euler.
This follows the revelation of the identity of the hacker who apologized last week. Several blockchain messages were exchanged where he explained his actions, indicating that it was an accident and that he intended to return the funds.
The Aftermath of the Flash Loan Attack
The flash loan attack, a commonly used method of exploiting DeFi protocols, pushed Euler Finance to take concrete action. On March 16, Euler Finance chief executive Michael Bentley announced a $1 million reward “for information that leads to the identification and arrest of the attacker.”
The Euler hacker responded favorably, indicating that he wanted to set up a private conversation.
The resulting return of the funds puts an immediate end to the million-dollar reward campaign. The Euler team has since announced their intention to provide additional information regarding this campaign on April 5th.
On the Flipside
- Following the recovery of its funds, Euler Finance Token is on the rise this week, showing a predictable rebound. The price increased by 13.57% in the last 24 hours at the time of publishing.
- The exploit of Euler Finance has brought attention to the persisting security issues in the decentralized finance industry.
- DeFi protocols remain susceptible to hacking and exploitation despite their popularity, resulting in substantial financial damages to both users and platforms.
24-hour market cap chart for Euler Finance Token. Source: Coinmarketcap.
Why You Should Care
This event marks a favorable outcome for one of the biggest cryptocurrency mining cases of 2023. The return of the funds establishes a significant precedent within the cryptocurrency realm for hackers, potentially resulting in heightened levels of deterrence.
While the victims of the breach have expressed their contentment with this outcome, it remains to be seen whether the prospect of prosecution induces potential wrongdoers to reconsider illicit activity.
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