Euler hacker returns 51,000 stolen Eth back to the protocol

The $200 million Euler hacker exploited earlier this month saw most of the stolen money returned to the protocol today. The majority of the increase in Euler’s native EUL token price occurred after the hacker restored tokens to the network, which may have boosted investor confidence. (Malva)

According to on-chain statistics, the hacker responsible for the $196 million Euler Financial lending protocol attack has returned the majority of the stolen assets. (Pereira)

The exploiter returned 51,000 Ether (ETH) in a transaction on March 25 that was valued at around $88 million as of writing this post. On the same day, a second transfer of 7,737 ETH, valued at almost $13 million, was made. Prior to this, on March 18, the hacker transmitted 3,000 ETH to the protocol, which was then worth close to $5.4 million. Some of the stolen assets are still in the exploiter’s possession.

The largest decentralised finance (DeFi) hack of 2023 was a flash loan attack on March 13, according to CoinDesk. The attack was carried out by briefly fooling the system into thinking it had different amounts of eToken and dToken. The total amount stolen in the attack was around $196 million worth of cryptocurrency. The hacker was able to exploit a vulnerability in the protocol’s smart contract code.  (Malva)

This incident raised concerns about the security of DeFi platforms and the need for more robust security measures to prevent such attacks in the future. It also highlighted the importance of conducting thorough audits of smart contract code to identify and fix vulnerabilities before they can be exploited by hackers.

A few days following the attack, the exploiter contacted Euler via an on-chain message and demanded compliance with the protocol. “We want to make this simple for everyone who is impacted. There is no desire to hold onto anything that is not ours. Establishing safe communication. Let’s reach a consensus, they said. (Pereira) 

The exploiter had already been asked to restore 90% of the assets they had stolen within 24 hours, or else the protocol would take legal action. While there was still no reply, Euler announced a $1 million reward for anyone who could provide information leading to the arrest of the exploiter and urged community members to remain vigilant and report any suspicious activity leading to the exploiter’s apprehension 24 hours later. (Pereira) 

The community members were worried about the safety of their assets and wanted to establish a safe communication protocol. They agreed to work together to prevent such incidents in the future and to ensure that their assets were secure.

They also decided to form a task force to investigate the exploit and identify any vulnerabilities in their system that could be exploited by hackers. Additionally, they planned to implement stricter security measures and educate community members on how to protect their assets.

The task force will consist of experts in cybersecurity who will conduct regular audits and vulnerability assessments. They hope that these measures will not only prevent future attacks but also increase trust within the community.”

This concludes the incident, highlighting the importance of security measures in the crypto space and the need for constant vigilance against potential hacks. It also shows that there are still individuals who are willing to do the right thing and return stolen funds to their rightful owners. The post has been rewritten by the author of this website and is published here under a Creative Commons Attribution Share Alike 3.0 License. The original articles are listed below.

References:

Malva, Shaurya. “Euler Finance Hacker Sends 51,000 Stolen Ether Back to Protocol.” Euler Finance Hacker Sends 51,000 Stolen Ether Back to Protocol, 25 Mar. 2023, www.coindesk.com/tech/2023/03/25/euler-finance-hacker-sends-51000-ether-back-to-protocol.

Pereira, Ana-Paula. “Euler Finance Exploiter Returns Over 58,000 Stolen Ether.” Cointelegraph, 25 Mar. 2023, cointelegraph.com/news/euler-finance-exploiter-returns-over-58-000-stolen-ether.