• The Euler Finance team announced on Tuesday that the hacker who stole $200 million from them has returned all recoverable funds.
• The attacker used a flash loan to steal $8.7 million worth of DAI, $34 million worth of USDC, and $19 million worth of WBTC plus $136 million worth of ETH.
• The Euler Foundation offered a reward of 1 million dollars in case the funds were not returned, and after successful negotiations, the hacker sent 100 ETH in ten transactions back to an intermediary address.
Euler Finance Attack
The decentralized finance (DeFi) lending protocol Euler Finance was attacked on March 13 and lost roughly $200 million in what is recorded as the biggest loss for crypto in Q1 2023. An exploiter used a flash loan to steal $8.7 million worth of DAI, $34 million worth of USD Coin (USDC), $19 million wrapped bitcoin (WBTC), and $136 million worth of staked Ether (ETH).
Offering A Deal To Hacker
In order to retrieve the stolen funds, Euler Finance publicly offered the attacker a deal to keep 10% of the stolen assets if they agreed to return the remaining funds. As a last resort, they also offered a reward up to 1 Million dollars if no agreement was reached with the hacker.
Hacker Returns Funds
Fortunately for Euler Finance, after successful negotiations with their attacker, they were able to retrieve all recoverable funds which were sent back in ten transactions containing one hundred ETH each through an intermediary address.
The media reacted positively toward this turn-out as it could have been much worse had things gone differently between both parties during negotiations. This incident is being seen as an example for other DeFi protocols on how to handle such security breaches without causing too much damage or suffering financial losses themselves.
Euler Finance’s attack serves as an example for other DeFi protocols on how to handle similar security breaches without suffering financial losses or damaging their image among users and investors alike. The incident ended happily with all recoverable funds being returned due to successful negotiations between both parties involved in this crisis situation