The decentralized finance (DeFi) sector recorded massive losses in 2022. While many expected a different story in 2023, bad actors have continued their game of exploiting DeFi. A few days ago, Hedera revealed a Loss of Liquidity Pool Tokens when a hacker exploited his mainnet smart contract code.
But the most recent DeFi attack happened on Euler Finance, another decentralized finance protocol. According to on-chain investigators, the attacker may have gotten away with more than $180 million worth of tokens.
Euler Finance loses millions of dollars in assets
Certik Alert reported the incident on Twitter revealing that the bad actors stole 41 million DAI and are still counting. It went further to warn users to be vigilant as the exploit was still ongoing at the time of the tweet.
After a few hours, Certik Alert updated that the hacker stole over $195 million from Euler Finance. The assets were revealed to be 96,800 ETH and 43.6 million DAI stablecoins, leading to the conclusion that this was the largest exploit so far in 2023.
EUL price drops 50% l Source: Tradingview.com
Lookonchain too Posted The attack revealed that the hackers stole massive DAI stablecoins and Ethereum tokens.
Notably, CertiK Alert has revealed that the bad actors transferred 101 ETH tokens to 0xc66 before depositing them with TornadoCash. This crypto mixer masks the movement of assets by mixing them with others before sending them to a final destination.
Ethereal Data shows that the hackers sent the Euler Finance funds to two new wallets. One wallet has 34,186,225 DAIs and 88,752 ETHs while the other has more than 88,77,507 DAI tokens.
On-chain tracker ZachXBT thinks The bad actors are black hat hackers exploiting logs on the Binance smart chain a few weeks ago.
Security company and law enforcement teams Up To Fix Exploit
In response, the Euler Finance team has assured users that they are working to stop the exploit. The firm said it had brought law enforcement and security experts on the matter and will update the community soon.
In particular, security firm PeckShield alerted Euler Finance to the incident and urged them to cooperate and resolve the incident. The security company later announced this discovered the root cause of the exploit.
Meanwhile, the decentralized finance sector had seen an exploit resulting in a loss of over $8.5 million. The incident occurred on last month platypus, another decentralized finance protocol behind a stablecoin USP. The incident caused a 50 percent depeg of the USP from the USD.
The DeFi protocol announced tweeted the incident and revealed how the bad actors exploited a flaw in his USP solvency check.
The team made several efforts to combat the incident, such as warning Binance, Circle, and Tether to freeze the hacker’s funds and negotiating a bounty.
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