DeFi protocol Euler Finance loses over $177m in hack, marks biggest cyber scheme of 2023: report
DeFi protocol Euler Finance loses over $177m in hack, marks biggest cyber scheme of 2023: report
Euler Finance, a decentralized finance (DeFi) protocol that provides crypto lending services, was hacked on Monday, March 13. This hacking attack allegedly drained at least $177.6 million (around Rs 1,455 crore) from Euler Finance, according to estimates by smart contract auditor BlockSec. Other blockchain research firms like Peckshield and Meta Seluth, on the other hand, estimate that the amount of stolen funds could be as high as $195 million (roughly Rs. 1,603 crore). This incident marks the biggest crypto hack of 2023 so far.
The hacker(s), who remain unidentified, may currently hold the stolen funds of 96,833 ETH, or $153 million (approximately 1,258 crore rupees). The remaining amount is split between Dai (DAI), Wrapped Bitcoin (WBTC), Staked Ether (sETH) and USD Coin (USDC) cryptocurrencies, BlockSEC said.
Founded in London, UK, the protocol allows its users to deposit their crypto assets there and earn interest. It was launched in 2020 by fintech entrepreneurs Michael Bentley, Doug Hoyte, and Jack Prior.
Shortly after security firms BlockSec raised the alarm about this hacking attack, Euler Finance released an update on the situation.
We are aware and our team is currently working with security and law enforcement professionals. We will post more information as soon as we have it. https://t.co/bjm6xyYcxf
—Euler Labs (@eulerfinance) March 13, 2023
For now, detailed details about this attack are awaited.
Meta Seluth, the crypto-analytics firm tracking the hack, claimed that the attacker may have leveraged a multi-chain bridge to transfer BNB Smart Chain (BSC) funds to Ethereum during the attack which was launched and executed on Monday.
Euler Finance, for the moment, has not officially revealed how the hack could have taken place.
DeFi protocols, which provide users with anonymity and autonomy to control their funds, are built on blockchain networks and are not controlled by any bank, broker or intermediary.
Hackers targeting DeFi protocols often identify vulnerabilities in the open source nature of the platform’s code to gain unauthorized access and address their criminal objectives. 2022 has witnessed a plethora of hacking attacks on DeFi protocols.
Hackers managed to steal up to $3.8 billion (nearly Rs 31,100 crore) from the crypto-dominated DeFi sector last year, according to a recent report by Chainalysis.
This year, meanwhile, had so far been relatively quieter in terms of recording massive crypto hacks.
In January this year, a total of 24 crypto exploits were recorded by Peckshield. These exploits amounted to $8.8 million (approx. Rs. 72 crore), which is significantly lower than $120 million (approx. Rs. 980 crore) of crypto lost in January 2022.
Losses from crypto exploits fell 93% in January 2023, compared to the same month last year, PeckShield had said in its February report which, however, changed today.
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