Hackers stole about $200 million worth of cryptocurrency from the Euler Finance lending protocol, media reported earlier this week.
Euler is a Decentralized Finance (DeFi) protocol on Ethereum that allows users to lend and borrow almost any crypto asset. Euler Labs, the company behind the protocol, confirmed the incident on Twitter, saying security experts and police were brought in to investigate the matter.
per Bleeping computer (opens in new tab) The incident exploited a poorly designed flash loan feature that allowed users to borrow money “in a flash” and pay it back just as quickly. There was a vulnerability in this feature that allowed attackers to borrow large sums of money without returning value to the service.
Wrapped BTC and staked ETH “Attackers use exploits to allow them to manipulate the price of tokens or assets on the platform for a few seconds while they hold the loan amount, so once the transaction is completed, they are left with a huge profit.” the publication said. explained.
In this incident, the attackers made $8.75 million in DAI tokens, $18.5 million in WBTC (“wrapped” Bitcoin – Bitcoin on the Ethereum network), and $33.85 million in USDC (US dollar pegged stablecoin). $, and stole $135.8. $1 million in stETH (Staked ETH – a liquid staking derivative token used to represent Ether staked in Lido (LDO)).
While the media reports that the funds are under scrutiny and that it is difficult for attackers to convert them into something they can use (and not confiscate), blockchain analytics firm Elliptic claims the stolen tokens Some say they have already gone through the attack. Tornado Cash mixer (i.e. washed).
Following the news, the Euler Token (EUL) dropped from $6.2 to $3.1 at the time of writing.
