Crypto hack: Euler Finance will offer a $1 million reward

Tweet from Euler Finance announcing a $1M reward.

The turmoil continues for Eurler Finance – After the USDC depeg this weekend, crypto news is again marked by a hack. This time it’s protocol Euler Finance who paid for it. Now, he is desperately trying to negotiate with the hacker.


Hack Eurler Finance: 196 million dollars stolen

Euler Finance is a lending protocol hosted on Ethereum that allows users to save and borrow cryptocurrencies in a decentralized way.

The protocol was the target of an attack on March 16, with more than 196 million dollars stolen.

According to a post mortem shared by Euler Finance it would seem that the attacker has exploited a lack of verification in Euler Finance contracts.

Indeed, Euler Finance allows its users to create artificial leverage by issuing and depositing assets in the same transaction. The flaw lies in the fact that the donation mechanism born does not check the health of the account who makes the donation.

Therefore, the attacker was able to exploit this loophole to create an extreme position and liquidate himself in the same block, artificially moving his position underwater.

In total, this operation allowed him to keep about $8.75 million in profit. He subsequently repeated the operation on several other assets of the protocol.

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Euler Finance offers 1 million dollars to find the hacker

On Wednesday March 15, Euler Labs announcement a reward of 1 million dollars in exchange for information that would lead to the arrest of the hacker.

“Today, the Euler Foundation is launching a $1 million reward in hopes of further incentivizing the pursuit of information leading to the arrest of the Euler protocol hacker and the return of all funds mined by the pirate. »

Tweet from Euler Finance announcing a $1M reward.
Euler Finance announces a $1M reward.

Shortly after this announcement, the hacker acstarted moving funds to the Tornado Cash protocol in order to cover the tracks.

Euler Labs had previously sent an on-chain message to the hacker’s address. They had warned him that they would throw a reward if 90% of funds were not returned within 24 hours.

Previously, they offered the hacker to keep 10% of the funds (about $20 million) as a bug bounty reward.

A user better at negotiation than Euler

While Euler is struggling to negotiate with the hacker, a user has meanwhile achieved the unthinkable.

On March 15, a user tried everything by contacting the hacker via a on-chain message. In his post, he begs the hacker to give him back “the savings of a lifetime” lost on Euler Finance.

“I’m just a user who only has 78 wstETH as lifetime savings deposited in Euler. I am neither a whale nor a millionaire. You can’t imagine what a mess I’m in right now, completely destroyed. I’m pretty sure 20M is already life changing for you and will bring joy back to a lot of affected people. »

We have already seen in the past dozens of attempts of this kind following hacks. However, our user got the chance of a lifetime.

Indeed, as revealed @ScorpeProtocolthe hacker has apparently took pity on the user and transferred him 100 ETH, worth $164,000 at the time of this writing. This is 22 ETH more than the user requested.

Transfer of 100 ETH sent by the hacker to the injured user
Transfer of 100 ETH sent by the hacker to the injured user – Source: etherscan.

Following this, other victims sent messages to the hacker’s address in the hope of recovering their funds as well, without success.

For now, users affected by this hack can only hope for a favorable outcome. Recently, the managed to negotiate with its hacker to return $ 1.59 million.

Hacks are unfortunate hazards but not inevitable. Play it safe and register now on the PrimeXBT platform (commercial link).

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