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Euler Finance: Hacker steals around $197M in 2023’s largest hack

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Euler Finance: Hacker steals around $197M in 2023's largest hack

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  • Eurler Finance was targeted by a flash loan attack on 13 March, with the attacker successful in stealing assets worth $197 million.
  • The ongoing attack has already become the largest hack of this year.

Ethereum-based noncustodial lending protocol Euler Finance was targeted by a flash loan attack on 13 March. The attacker was successful in stealing almost $197 million in Dai, USD Coin (USDC), staked Ether (StETH), and wrapped Bitcoin (WBTC).

Euler Finance acknowledged the exploit on Twitter and stated that it is currently working with cyber security and law enforcement professionals to resolve the issue.

According to the most recent update, the exploiter stole nearly $197 million in multiple transactions.

Crypto analytic firm Meta Sleuth shared on Twitter that the attack was related to the deflation attack from a month ago. The hacker launched the attack today by using a multi-chain bridge to transfer funds from the BNB Smart Chain (BSC) to Ethereum.

Another prominent on-chain security expert, ZachXBT, noted that the movement of funds and nature of the attack appears to be very similar to black hats who exploited a BSC-based platform in February. The funds were transferred to Tornado Cash after exploiting a protocol on BSC a few weeks ago.

Last year, Euler Finance raised $32 million from San Francisco-based VC firm Haun Ventures in a funding round in which FTX, Coinbase, Jump, Jane Street, and Uniswap participated.

Euler Finance has become well-known over the year for its liquid staking derivatives (LSDs) services. These tokens allow investors to boost their potential returns by unlocking liquidity for staked cryptocurrencies such as Ethereum.

LSDs currently account for up to 20% of the total value locked in centralized finance protocols.

Largest crypto hack of 2023

The ongoing attack has already become the largest hack of this year.

Decentralized finance (DeFi) exploits occur when hackers take advantage of an open-source platform’s code to gain unauthorized access to its assets and exploit them. DeFi attacks are one of the most serious issues confronting the crypto industry.

In 2022, over $3 billion was stolen from DeFi protocols via hacks or exploits, according to blockchain analytics firm Chainalysis. 2022 was the biggest year ever for crypto hacking, with $3.8 billion stolen from cryptocurrency businesses.

DeFi protocols as victims accounted for 82.1% of all cryptocurrency stolen, that is, a total of $3.1 billion, by hackers in 2022.

Source: Chainalysis

Source: Chainalysis

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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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