The Euler Hacker just returned 51,000 ETH to Euler’s Deployer address from a recent hack about 20 minutes ago as can be seen on the Deployer Wallet.
Background:
On March 13, 2023, the Ethereum-based noncustodial lending protocol, Euler Finance, faced a flash loan attack. The attacker was able to steal millions in various cryptocurrencies including DAI, USDC, staked Ether (StETH) and wrapped Bitcoin (WBTC).
According to on-chain data, the attacker carried out multiple transactions, stealing nearly $197 million in total. The attack was particularly concerning as it came just one month after a deflation attack on the same protocol. In this recent attack, the attacker used a multichain bridge to transfer the stolen funds from the Binance Smart Chain to Ethereum.
The Euler Finance team quickly responded to the attack, stating that they were aware of the incident and were working to mitigate the damage. They also reassured users that the protocol’s security measures were being reviewed and improved to prevent future attacks.
Flash loan attacks have become increasingly common in the DeFi space, with several protocols being targeted in recent months. These attacks involve exploiting the ability to take out a loan and repay it within the same transaction, which can be used to manipulate the market and steal funds.
While these attacks are concerning, they also highlight the importance of ongoing security measures and regular audits in the DeFi space. Euler Finance’s response to the attack is a reminder of the need for transparency and swift action in the event of a security breach.
As the DeFi space continues to grow and evolve, it is essential that protocols prioritize security measures to protect their users’ assets and maintain the integrity of the ecosystem. The Euler Finance attack serves as a reminder of this ongoing challenge and the need for constant vigilance.