Exploiter of Euler Finance Returns $102 Million Worth of Stolen Funds
In a surprising turn of events, the exploiter of Euler Finance, a decentralized finance (DeFi) lending protocol, has reportedly returned a total of 58,737 ether (ETH) worth about $102 million at current rates. This news comes after the hack on March 13, 2023, which resulted in a loss of $197m from the protocol.
BlockSec, a blockchain security firm working with Euler Labs, confirmed that the exploiter returned 51,000 ETH and a further 7,737 ETH, along with some other stolen assets, to the protocol. This development is a remarkable achievement for Euler Labs, which has been working tirelessly with security professionals and law enforcement to track down the exploiter and recover the funds.
Euler Labs Offers a Bounty for Information
Euler Labs, the protocol’s developer, had offered a $1m bounty for any information that could lead to the return of the funds. In an interesting twist, the owner of a wallet allegedly containing 10m of the DAI stolen from Euler sent out a message indicating they would be willing to give detailed information about the Euler hacker in exchange for the 10% bounty Euler had previously offered.
This message was quickly followed by another text from another wallet linked to the hack, in which someone identifying themselves as “Euler exploiter 3” put out an email address and asked Euler to contact them to spill the beans regarding the people behind the Mar. 13 exploit. In this case, the person explicitly stated they were uninterested in the bounty.
The Hack on Euler Finance
The hack on Euler Finance was one of the largest flash loan attacks in DeFi history. The attacker exploited the protocol’s smart contract vulnerability and stole over $197m of crypto assets. The stolen funds included $8.7m of DAI, $19m of wrapped bitcoin (wBTC), $34m in USD Coin (USDC), and about $136m of staked ether (stETH).
Are Hackers Turning on Each Other?
The messages sent by the two wallets linked to the hack raise the question of whether hackers are turning on each other. It is still being determined whether the first exploiter returned the funds voluntarily or under pressure from the authorities. However, some speculate that the exploiter may have negotiated with Euler Labs to avoid legal consequences.
The return of the stolen funds to Euler Finance is a significant development that will provide some relief to the protocol’s users and investors. It is a testament to the hard work put in by Euler Labs, BlockSec, and law enforcement agencies in recovering the funds. The messages from the wallets linked to the hack are also interesting developments that suggest that hackers may be turning on each other. It remains to be seen whether this trend will continue in the future.