Recently, the mastermind behind the $200 million heist on Euler Finance has taken a surprising turn of events by returning a majority of the stolen funds to the protocols.
This unexpected move has caught the attention of the blockchain community, as it is rare for a hacker to return their ill-gotten gains voluntarily.
More than 51,000 ether, worth approximately $90 million as of Saturday, was transferred back to the Euler deployer contract in the early hours of the day. The returned funds have given some respite to Euler Finance, which suffered a major setback due to the exploit.
However, the hacker also made a series of transactions that moved tens of millions of dai stablecoins to another wallet, according to blockchain data.
What Were the Hackers Intentions?
It is unclear what the hacker’s intentions are with these transactions, but it has raised concerns among the Euler Finance team and the crypto community at large.
This incident once again highlights the vulnerabilities in the DeFi space and the importance of implementing robust security measures to safeguard against potential attacks.
Despite the setback, Euler Finance is committed to continuing its mission of revolutionizing the world of decentralized finance and strengthening its security protocols to prevent future exploits.
Following the heist on Euler Finance, the lending protocol announced a bounty offer of $1 million for the hacker to return the stolen funds. At the time, developers had requested that 90% of the stolen funds be returned to the protocol.
This move by Euler Finance highlights the severity of the attack and the significant impact it had on the protocol.
The exploit resulted in the loss of almost $200 million, which was spread across four transactions involving popular cryptocurrencies like dai, wrapped bitcoin, staked ether, and USDC.
Despite the setback, Euler Finance is taking proactive steps to recover from the attack and strengthen its security protocols.
Developers are Still Vigilant
The return of a significant portion of the stolen funds by the hacker is a positive development, but the protocol’s developers remain vigilant and are actively working to prevent future exploits.
The heist on Euler Finance was carried out using a flash loan, a type of loan that allows a borrower to take out funds without collateral as long as the loan is repaid within the same transaction.
In this case, the attacker used a flash loan to manipulate the protocol into believing it held different amounts of eToken and dToken, which resulted in the theft of almost $200 million.
Final Thoughts
Following the hacker’s return of a significant portion of the stolen funds, Euler Finance’s native EUL tokens saw a surge in value, rising by 25% over the past 24 hours.
It is likely that the return of the tokens fueled positive sentiment among traders, who are optimistic about the protocol’s ability to recover from the attack.