Euler Finance Reveals The Biggest Hacking of 2023, Claims $197M Was Stolen
Yet another big hacking operation was successfully carried out by some anonymous hacking group, carting away a little over $197 million in four stablecoins: USDC, WBTC (Wrapped Bitcoin), Dei, and StETH (staked Ether). Information revealed the target as Euler Finance: a popular Ethereum-related lending platform. At the time of this report, the management of Euler Finance has since acknowledged this development.
While talking about the attack on their Twitter handle, the company stated that they are working with relevant authorities, including reputable cybersecurity outfits, to get the situation under control as soon as possible. In their tweet, the company disclosed that the attackers had stolen close to $197 million in stablecoins, which was done through multiple transactions.
This development has started attracting attention from different corners of the industry. One such figure is Meta Sleuth, a cryptocurrency analytic company that shared the tweet by Euler Finance few minutes after it was posted. The Meta Sleuth also claims that this attack can be in connection with the deflation cyber-attacks from last month.
Analysis On the Attack As Explained By the Company
While explaining the situation, the management of Euler Finance said that the hacker carried out the attack today, 13th March 2023. They also revealed that the attackers had used what they explained as a “multiple chain bridge” to carry out the transfer operations from their Binance Smart Chain to Ethereum.
ZachXBT, another popular cybersecurity expert who commented on this situation, was reported to have said that the movement of the money stolen from the system and the method of the attack has similar characteristics with a “black hat” method of hacking operation.
They, therefore, linked it to the attack that was carried out on a BSC platform sometime in February. From the available information gathered so far, investigations into the situation have shown that funds were wired to Tornado Cash immediately after hacking a BSC protocol a few weeks before.
It was gathered that Euler Finance had raised $32 million in funding from Haun Ventures: a venture capital company based in San Francisco. It was also said that cryptocurrency companies like the embattled FTX, Uniswap, Jump, Coinbase, Jane Street, and others also participated in the fund-raising.
How Investors are Reacting to the Development
Like everyone else, investors at Euler Finance woke up with the news of the hack hence, the sad expression of disappointment that has filled their tweets since the earlier hours of today. From the various tweets gathered so far, investors are curious and afraid at the same time; the expression in their tweets seems like confusion: they don’t know what’s going to happen next. Their tweets look more like people hoping to get word of hope from either the authorities or the company.
In one of their many sad tweets, some investors wondered why the company would have allowed such activity to happen, considering the nature of the cybersecurity infrastructures they had claimed to have had. These sad tweets include: “…oh over $1.3 million gone,” “can’t believe I lost a hundred thousand dollars in a matter of hours..” the tweets goes on and on.
It is also revealed that this was the situation in virtually all the social media platforms including. In Discord; investors were practically devastated by the latest development. As of the time of this report, the company has not issued any future plan on how best to tackle the situation. But all hopes are high. Rumors also have it that there are plans to involve relevant government authorities like the FBI, but it is still uncertain because the company has not made any formal statement.
Meanwhile, on the Euler Finance website, the company has clearly stated that they are partnering with six wield class cybersecurity companies to remedy the situation. Although some analysts believe that it is a good but desperate move, but isn’t enough to deal with the situation.
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