Euler Finance faces $197 million hack

BlockSec first broke the news that Euler Finance had been hacked by malicious players. The hacking attempt was reportedly successful since the players were able to take a total of $197 million from the network. The blockchain security firm has further stated that $177 million was stolen in four different transactions.

Two more hacks were done later to take the total to $197 million. The Google Document shared by BlockSec has stated how the fund was stolen. The same is described below:

• $18.5 million worth 849 wrapped BTC

• $33.85 million worth of USDC
• $135.8 million worth 85,817 staked Ethereum

Arkham Intelligence has corroborated the findings of BlockSec, confirming that there was a hack for the said amount. Euler Finance immediately communicated with the community on Twitter, sharing that it is aware of what has happened and that its team is working collectively with security professionals & law enforcement agencies to recover the stolen funds. More information is expected to be shared by Euler Finance.

The last information was regarding the actions taken by the team in detail. Euler Finance said that it helped disable the EToken module to stock the direct attack. This led to the blockage of deposits and the donation function. Euler Finance also engaged with Chainalysis, TRM Labs, and the broader ETH security community to provide assistance in recovering the funds during the ongoing investigation.

All the law enforcement agencies in the United States of America and the United Kingdom have been notified, according to the notes shared by the UK-based firm.

Euler Labs collaborates with several security groups to ensure that there is no vulnerability. A vulnerable code was reviewed and approved during an outside audit; however, it was not discovered as a part of the audit. It remained on-chain for a total of eight months until being exploited. The discovery never made it to the audit despite the announcement of a bug bounty worth $1 million.

Euler Labs is a startup that is based in the UK. It leverages mathematical capabilities to deliver high-performing non-custodial protocols on Ethereum, among other blockchains.

The hack by malicious players has caused the value of the EUL token to drop by 48% to a value of 3.10. This number was reported by CoinMarketCap at the time of drafting this article. The on-chain lending service had recently led a funding round for $32 million that saw the participation of Coinbase and FTX – now a defunct platform.

Euler Finance continues to work collectively with relevant teams. More pieces of information can be expected.