Finance

DeFi Exploit Alert: Euler Hack Caused Almost $200 Million Loss

03/15/2023
Bitcoin Ethereum News
  • From the hack of a DeFi protocol, hackers stole nearly $200 million. 
  • Euler, recently got hacked  resulting in decreasing its token EUL value by 50%.

A Decentralized Finance (DeFi) protocol suffered from an exploit that caused a nearly $200 million loss. On March 13, PeckShield, a blockchain monitoring firm, sent a tweet in which it added the crypto lending platform Euler Finance, simply saying: “Hi […] you may want to take a look.”

The Exploit of DeFi Protocol

The intention of the blockchain monitoring firm to suggest Euler take a look at a series of transactions that indicated there was an ongoing hack against Euler. According to PeckShield, hackers exploited Euler “in a flurry of transactions,” which led to nearly $197 million in crypto theft. Also, a crypto-security firm BlockSec reported the attack, according to a Yahoo News report.

This was the 26th largest crypto theft ever, according to a website keeping track of crypto hacks and frauds.

Euler wrote in response to the tweet, “We are aware, and our team is currently working with security professionals and law enforcement. We will release further information as soon as we have it.”

ZachXBT, an independent researcher known for investigating crypto frauds and hacks, also responded to the tweet.

Over the official Discord and Telegram channels, several Euler investors are complaining about what happened and wondering what they should do next and if there is any hope. One of them wrote as “Almost 1.3M USD gone. I thought they were the most secure lending protocol, I never liked Michael on Twitter, but I wouldn’t even imagine them releasing updates without prior notice or audits.”

While another investor on the same channel added “Nice to at least know how I respond when I lose over $100k in the space of an hour. Learned a little about myself today. Maybe it’s not about the money, lads, it’s about what you learn along the way.”

On the official site, Euler added it has partnered with 6 “top security” firms. It simply shows that it was not enough to stop hackers.

On the other hand, the price of Euler’s crypto token, EUL, fell dramatically following the news of the attack. EUL token fell 50% hours after the news of the exploit on its protocol, while First Republic (FRC) shares fell nearly 62% following the latestbank turmoil. The price action of EUL undermines how investors’ perceptions of market events can be more influential than the real events.

The DeFi protocol has lost hundreds of millions of dollars with a little hope of getting them back. Still, traders punished FRC shares more severely. First Republic has not defaulted, gone insolvent, or been seized by the government; raising $70 billion over the weekend to support its liquidity.

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Source: https://www.thecoinrepublic.com/2023/03/14/defi-exploit-alert-euler-hack-caused-almost-200-million-loss/