Euler Finance hacker returns $5.4M

On March 16, Euler Finance, a decentralized finance (DeFi) protocol, announced that it had been the victim of a massive hack in which a total of $197 million was stolen. This was quickly dubbed the biggest DeFi hack of 2023 so far and sent shockwaves through the crypto community.

The hacker was able to drain the funds through a series of multiple transactions, and then used a multichain bridge to transfer the stolen funds from the Binance Smart Chain to Ethereum. The hacker then moved the stolen funds into the crypto mixer Tornado Cash, making it difficult to track the funds.

However, on March 18, there was a surprising development when the hacker reportedly returned around $5.4 million in Ether to Euler Finance’s deployer address. The funds were sent in three transactions, and it is unclear why the hacker decided to return the funds.

This is not the first time that a hacker has returned stolen funds after a high-profile hack. In 2016, the hacker who stole $55 million from the DAO returned the stolen funds, citing a “bug” in the code. It is possible that the hacker behind the Euler Finance hack had a change of heart, or was pressured to return the funds after Euler Finance announced a $1 million reward for information on the hacker’s identity.

Euler Finance has demanded that the hacker return 90% of the stolen funds within 24 hours to avoid possible jail time. It remains to be seen whether the hacker will comply with this demand, or whether the rest of the stolen funds will be returned.

The Euler Finance hack highlights the ongoing security risks in the DeFi space. DeFi protocols are designed to be open and transparent, but this also makes them vulnerable to attacks. It is important for DeFi protocols to take measures to improve their security, such as performing regular audits and implementing multi-factor authentication for user accounts. Only by doing so can DeFi protocols gain the trust of users and investors alike.


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Hacker moves stolen funds after bounty launch

A hacker responsible for a $196 million attack on Euler Finance has moved some of the stolen funds into the crypto mixer Tornado Cash, just hours after a $1 million bounty was launched to identify the perpetrator. The attack, carried out through a flash loan on the Ethereum noncustodial lending protocol, resulted in the theft of a range of cryptocurrencies including Dai, USD Coin, staked ETH and wrapped Bitcoin. Blockchain analytics firm PeckShield reported on Twitter that the hacker had transferred 1,000 ETH, equivalent to around $1.65 million, via the sanctioned mixer. Euler Labs had previously sent a message to the attacker’s address warning of the bounty and offering amnesty if 90% of the funds were returned within 24 hours. However, the hacker’s movement of funds suggests that they are not swayed by this offer.

Victims of the attack have been appealing for the return of their funds, with one message on the blockchain claiming that a group of 26 families from jobless rural areas had lost a total of $1 million in the attack. Another message was sent by an apparent victim who congratulated the hacker on their “big win”, but begged for help as they had invested funds they “desperately needed” for a house. “My wife is going to kill me if we can’t afford our house. Is there anyway you can help me? I have no idea what to tell my wife,” they wrote.

The hacker’s use of a crypto mixer is a common tactic for obscuring the source of funds, and is likely to make it harder for authorities to identify them. However, the blockchain trail may still provide some clues, and the bounty may encourage individuals to come forward with information. The incident highlights the risks associated with DeFi and the importance of robust security measures.


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