Euler Finance, a DeFi lending platform, has been the victim of a major hack, resulting in millions of dollars worth of crypto tokens being stolen. In response, Euler Finance has taken aggressive action to recover the stolen funds by involving security firms and authorities from both the US and UK.
Recently, Euler Finance released an update regarding the incident, demanding that the hacker return 90% of the stolen funds within 24 hours or face prosecution. To enforce this ultimatum, Euler Finance sent a flash loan to the hacker with a message embedded in the transaction.
Euler Finance Sent On Chain Message To Hacker
The message demanded that the hacker returns 90% of the stolen funds within the given timeframe. If the hacker fails to do so, the lending platform will launch a $1 million reward for information that will lead to the arrest and recovery of the funds.
The attack occurred on March 13, resulting in the loss of around $196 million in digital assets. Euler Finance has been investigating the incident with other security and auditing firms and had earlier sent a message to the hacker’s address requesting a discussion and cooperation regarding the attack details and stolen funds.
There have been mixed reactions among online observers about the possibility of Euler’s ultimatum working. Some believe the attacker has little or nothing to gain by agreeing with Euler’s offer. Others have suggested that the hacker could offer a double value to anyone who could track him, meaning that the attacker could offer $2 million against the $1 million offered by Euler.
The exploit on Euler Finance has affected some decentralized protocols, with the contagion spreading to about 11 other DeFi protocols, according to their various posts on Twitter. For instance, Balancer reported that the attack impacted Euler Finance’s Boosted USD (bbe-USD) pool, resulting in around 65% of the pool’s total value locked (TVL) being drained. Similarly, Angle Protocol reported losing several tokens worth about $17 million, while Idle Finance, Yoeld Protocol, and Yearn Finance also lost some amounts in the Euler hack.