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Curve Finance offers 1.85 mln bounty to recover stolen crypto funds

2min Read

DeFi protocol Curve Finance has opened a bounty of $1.85 million to public to identify the exploiter behind the $73 million attack.

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  • The DeFi hack worth $73 million occurred across different Curve Finance pools on 30 July.
  • The hacker has returned stolen funds only to a few pools. $19 million in assets still remain unrecovered.

DeFi protocol Curve Finance has offered a bounty of $1.85 million to anyone who can identify the exploiter responsible for the recent reentrancy attack.

The crypto hack occurred on 30 July, resulting in the theft of more than $73 million in crypto assets from Curve’s different pools. The affected pools included Alchemix, JPEGd and Metronome.

Reentrancy is a common bug that provides hackers opportunities to trick a smart contract into stealing assets by making repeated calls, or software commands, by making repeated calls to a protocol. The attack was found to be caused due to a faulty Vyper code. The code forms the foundation of several parts of the Curve Finance system.

The affected protocols, including Curve Finance, first offered a bug bounty of 10% to the hacker on 3 August. Though the hacker accepted the offer, they only returned the stolen funds to Alchemix and JPEGd.

 

Over $19 million in stolen funds are still remaining.

Curve Finance announced on 6 August that the deadline for the hacker to return all the funds has passed. It then announced a bounty worth 10% of the unrecovered funds, $1.85 million. The protocol also said that it will take the matter to court for conviction.

How the DeFi space is coping with the attack

In the aftermath of Curve Finance’s exploit, the DeFi vertical of the crypto ecosystem has experienced a 7% downturn in total value locked (TVL). DeFi TVL held across multiple chains stood at around $41 billion, as per DefiLlama.

Source: DefiLlama

The lending DeFi protocol, AAVE, suffered a decline of nearly 7% within a week. This was due to the protocol’s significant exposure caused by Curve Finance founder Michael Egorov’s loans on its platform.

Source: DefiLlama

Egorov had loans against the project’s native CRV tokens across several DeFi lenders. Later, it emerged that Ergorov had executed several over-the-counter deals worth $42.4 million with several notable crypto influencers.

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Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
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