A Lending Protocol Based On Ethereum Network Suffers From A $195 Million Hack
The Euler Finance protocol has recently made an announcement pertaining to an attack it has suffered from. The officials at Euler Finance were enraged while sharing the news about the exploit of their protocol.
A Flash Loan Attack Hits Euler
As per the officials at Euler Finance, their protocol has suffered from a major exploit, which has resulted in a huge loss.
Euler Finance, a noncustodial lending protocol based on the Ethereum network, made the announcement about the flash loan attack on March 13.
The teams investigating the attack on the protocol have claimed that the attacker was able to steal multiple cryptocurrency assets.
Tokens Stolen by the Attacker
The investigative team has revealed that the attacker was able to steal assets worth millions. These funds were in the form of USD Coin (USDC) and Dai (DAI).
Apart from the stablecoins, the attacker was able to steal the staked tokens as well as the wrapped cryptocurrencies.
The most prominent staked tokens that the attacker was able to steal included the staked Ether (StETH). As for the wrapped cryptocurrencies, the attacker stole the wrapped Bitcoin (WBTC).
Exploiter is Being Tracked
The teams at Euler finance as well as other on-chain firms have been trying to find the traces of the exploiter. They are trying their best to track the activities and movements of the exploiter to ensure they manage to freeze the funds.
So far, they have established that the exploiter has been involved in carrying out multiple transactions. He has been trying to hide his trace to ensure that no one is able to catch him.
The investigations have confirmed that the exploiter has stolen almost $196 million worth of cryptocurrencies from the protocol.
Surprisingly, the attacker is still at it while the teams are trying to bring an end to the flash loan attack. While the teams have been trying to stop the exploit from taking place any further, it has also achieved a record.
According to the exploits and hacks data from the year 2023, the Eule Finance flash loan attack has become the largest hack of the running year.
The investigation teams have claimed that the hacker had started setting up the stage for the exploit a month back.
Meta Sleuth, an analytics firm working closely with Euler Finance has claimed that the attack had started building up back in February.
At first, the hacker carried out a deflation attack on the protocol in the month of February. After that, the hacker knew what he was going to do to deal with the situation.
He reportedly used a bridge based on the multi-chain in order to carry out a transfer of funds. He launched the transfer from the BNB Smart Chain (BSC) and the planned execution was to the Ethereum blockchain.
Once everything was ready, the hacker proceeded with the exploit and launch the attack today.
ZachXBT Supported the Claim
Another major investigator from the crypto industry going by the pseudonym, ZachXBT, supported the claim that Meta Sleuth had made.
He stated that he closely monitored and studied the hack that was attempted on the BSC-based protocol that took place in February.
His findings confirm that there is a great similarity between both the exploits so he can say that the previous hack was part of the bigger plan.
In February, as the hacker carried out the exploit on the BSC-based protocol, he attempted to hide his trace. The hacker moved the funds right away to Tornado Cash, a crypto mixer sanctioned by the US Government.
Addresses Carrying the Funds
So far, the teams have established that the hacker has his funds stored in three different addresses.
One address has 34,186,225.91 DAI and 88,752.69 ETH stored in it. The next address has 8,080.97 ETH stored in it and the last address is currently holding 8,877,507.34 DAI.
This is yet another major blow for the already struggling crypto industry and goes to show that despite the security upgrades, there is still more to be done.