Cryptocurrency is a world full of firsts. In a turn of events that no one anticipated, the hacker who stole $200 million from Euler Finance has really changed their mind and returned all the money that could be recovered.
It took place soon after the DeFi blockchain business offered a $1 million prize to anyone who could identify the hackers responsible for this attack.
On Monday, the DeFi team tweeted, claiming that following discussions, hackers had returned all of the $200 million that was recoverable. Euler Labs confirmed in a subsequent tweet that it would halt the $1 million incentive campaign and would no longer take fresh information on this subject.
How Much of Euler Lab Was Stolen?
According to on-chain data provided by Euler Labs, the hacker made off with three transactions totaling $12 million worth of DAI, a stablecoin created by MakerDAO, and 8080 ETH, 2500 ETH, and 2500 ETH. The total loss to Euler Labs from these hacks was $31 million; these were the only funds recovered.
Three weeks ago, the DeFi community was completely rocked by the attack. Hacks in the cryptocurrency field are nothing new; consumers have lost billions as a result of them in the past; however, this one occurred just when the market was beginning to recover.
Eueler Labs tweeted about the aid it had from the neighborhood, saying they were appreciative of everyone’s support during this trying time. As of right moment, the team is preparing to create a user-asset restoration plan that will be put to a vote via the DAO in the following days.
The Euler Exploit: What was it?
The flash loan exploit that caused Euler Finance to lose $197 million occurred on March 13th, 2023. BlockSec, a firm that audits smart contracts, examined the contracts and discovered the stolen monies, which led to the discovery of the loss.
- DAI with a price tag of $8.7 million
- Wrapped BTC valued about 18.5 million dollars.
- Ethereum was staked for 135.8 million dollars
- USDC was staked for 33.8 million.
The origin of this exploit is currently unclear, according to BlockSec. However, investors noted that flash loans, a method that lets users borrow and lend tokens in the same transaction, are likely to responsible for this mess.
According to PeckShield, a blockchain security and data analytics startup, the « donateToReserves » function included in the loan’s smart contracts is what led to this vulnerability.
The business claimed that the hack was caused by the donation and liquidation procedure of the contract’s defective logic. While guaranteeing the accurate conversion rate is necessary for liquidation, it was noted that contribution opened the door for liquidation with an inaccurate conversion rate.
We must acknowledge that, whatever the cause of the hack, the majority of the monies were recovered. What then caused the hacker to alter his mind?
The Hacker Declares “I fu*k*d Up”
The hacker’s statement was more passionate than normal when the Euler Foundation started to see some of its cash return to its virtual bank accounts.
The hacker, who purportedly goes by the moniker Jacob, expressed extreme regret for his actions.
“Jacob here. I don’t think what I say will help me in any way, but I still want to say it. I f**ked up. I didn’t want to, but I messed with other’s money, other’s jobs, other’s lives. I really f**ked up. I’m sorry. I didn’t mean all that. I really didn’t f**king mean all that. Forgive me.”
This seems sincere as far as apologies go. The hacker’s grammar errors also indicate that he could have been a little upset when he penned this message.
That doesn’t change the fact that money was stolen and that many people did end up losing the majority of their possessions, though. Does that imply that this apology is being offered too little, too late? Maybe.
Where is the remaining money, is a different query. A staggering $166 million is still up for grabs because just $31 million of the $197 million has been retrieved. What is it’s location?
In response, « Jacob » stated that the remaining funds will be reimbursed as soon as possible. Can this be real?
Since the Euler Foundation stopped offering $1 million rewards, it’s possible they know something we don’t. Crypto developers, however, share the same emotional spectrum as the rest of the crypto community, as we have frequently observed in the area. Therefore, that may have also been the case here; Euler Labs is hopeful that the hacker will restore the remaining funds.
Truthfully, though, what occurs next can only be determined by time. Euler Finance is presently trading at $3.84 and has increased by 3.46% over the past 24 hours. Although it is still worth $6.3, which is over 50% less than it did before to the attack.
