Hacker Stole About $200 Million In Cryptocurrencies From DeFi Platform Euler Finance
Reports revealed that a hacker recently exploited Euler Finance, a decentralized finance firm. According to SlowMist, a crypto-security firm, the thief stole about $200 million in crypto assets from the platform on Monday.
Shortly after the news surfaced online, the representatives of Euler Finance broadcasted that the incident indeed happened. He also confirmed the figures to be true. In addition, the firm assured its users that it is working hand in hand with several security companies, independent auditors, and law agencies to investigate the exploit.
Furthermore, SlowMist explained that the scammer carried out the attack via a very dubious loan process. They said he used flash loans to put funds onto the platform and then leveraged them twice to execute the liquidation protocol. Afterward, he somewhat boycotted regular liquidity checks and donated the funds to the platform’s reserve address.
His high-leverage input triggered the soft liquidation mechanism, significantly increasing his yield value. In addition, the process enabled him to access most of the collateral funds from the account used for the loan, as he transferred a part of the liabilities to himself.
And provided that the worth of the collateral funds significantly surpassed the cost of the liabilities, which he claimed, he seamlessly passed the health factor checks on Euler Finance and stole away the funds he obtained.
Crypto Theft Increases Annually
Furthermore, the report revealed the total breakdown of the various crypto assets the hacker absconded with. He stole about 96 833 Ethereum, worth a whopping $166 million at publication time. In addition, he carts away DAI, a USD-pegged stablecoin that is worth about $34 million. Euler Finance urged its users to remain calm as it works with law agencies and cyber securities to resolve the crime.
Of course, Euler Finance’s exploit was not the first DeFi protocol to be attacked and definitely not the last. In fact, a crypto analysis revealed that attackers looted close to $3.8 billion from the crypto industry in 2022. The figure was the highest annual theft rate to be recorded in the industry. Additionally, a significant part of the exploited projects were decentralized finance firms.
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