UK’s Euler Finance loses $197m in 2023’s biggest hack

Adeniyi Odukoya
Euler Finance loses $197m in 2023's biggest hack

UK-based Defi lender Euler Finance became the latest blockchain firm to suffer a hack attack, which succeeded in scooping up $197 million in cryptocurrencies from its platform on Monday.

The Ethereum-based noncustodial lending protocol’s recent catastrophe is the biggest hack for this year. The hacker succeeded in carting away millions in cryptocurrencies. This booty includes staked Ether tokens (stETH), wrapped Bitcoin, and stablecoins DAI and USDC, Amber Crypto reports

The stolen funds are currently sitting in the following hacker addresses:

0xebc29199c817dc47ba12e3f86102564d640cbf99 (Contract) – 8,877,507.34 DAI

0xb2698c2d99ad2c302a95a8db26b08d17a77cedd4 – 8,080.97 ETH

0xb66cd966670d962c227b3eaba30a872dbfb995db – 88,752.69 ETH & 34,186,225.91 DAI

Euler Finance loses $197m in the biggest hack of the year so far

Euler Finance admitted on Twitter that the misfortune had happened; in a bid to ensure a bizarre situation is avoided, it explained that it is presently working with cyber security and law enforcement officials to ensure the issue is solved:

“We are aware, and our team is currently working with security professionals and law enforcement,” Euler tweeted on Monday, responding to PeckShield. “We will release further information as soon as we have it.” 

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More details regarding DeFi Lender Euler Finance hack

Cryptoanalytic firm Meta Sleuth shared on Twitter that the attack was related to the deflation attack from a month ago. The hacker launched the attack today via a multi-chain bridge to transfer funds from the BNB Smart Chain (BSC) to Ethereum.

ZazhXBT highlighted that the movement of funds and nature of the attack seems very similar to those of black hat hackers who attacked a BSC-based platform last month.

Some weeks ago, funds were sent to Tornado Cash after attacking a protocol on BSC. This horrible attack leaves around $9.7 million locked on the platform. The pricing data from CoinGecko shows that the protocol’s EUL has fallen more than 50% to an excruciating low of $2.88 after news of the attack came to light. Though the platform’s developer, Euler Labs, did not immediately reveal the attack’s details.

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Euler Finance raised $32 million from San Francisco-based VC firm Haun Ventures last year in a funding round that included FTX, Coinbase, Jump, Jane Street, and Uniswap. Over the year, Euler Finance became well-known for its liquid staking derivatives (LSDs) services.

These tokens enable investors to increase their potential returns by providing liquidity for staked cryptocurrencies like Ethereum. LSDs account for up to 20% of the total value locked in centralized finance protocols at the moment.

DeFi platforms and unceasing hacks

In 2022, over $3 billion was stolen from DeFi protocols via hacks or exploits, according to blockchain analytics firm Chainalysis. 2022 was the biggest year ever for crypto hacking, with $3.8 billion stolen from cryptocurrency businesses.

Going into the new year of 2023, there were hopes that hackers would be properly dealt with by DeFi platforms through different schemes. Interestingly, that has not been the case.

Read Also: Visa and Mastercard to delay crypto partnerships amidst uncertainties

Hacking is a disturbing part of the market and has doubled the fear that crypto enthusiasts have towards the market. Decentralized finance platforms have grown to become the core targets of crypto hackers.

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A report by Cointelegraph states that DeFi protocols operate with limited daily oversight from humans, instead relying on lines of open-source code to execute transactions automatically. This leaves them vulnerable to flaws that can be exploited, making it harder for individuals or teams to stop hackers in their tracks.

To prevent hackers, DeFi platforms should ensure all smart contract codes are properly audited by credible, third-party sources. Besides, there are other methods that DeFi platforms should look into going forward in their fight against this plague, hacking.

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