Euler Finance Loses $200mln Worth USDC to Hackers March 17, 2023 March 17, 2023 Kelly Cromley http://1AZFjzw2#Nwf63pYaMWq#xIY
Market NewsMarch 17, 2023 by Kelly Cromley

Euler Finance Loses $200mln Worth USDC to Hackers

On March 13, 2023, the Ethereum blockchain-focused borrowing and lending firm Euler Finance suffered losses due to a flash loan cyberattack. According to Chainalysis, in February 2023, additional platforms including dForce and Platypus were also hit.

The company incurred a $200 million loss in USDC, wrapped Bitcoin (wBTC), staked Ether (stETH), and DAI, according to Chainalysis. It is believed that the breach occurred due to a liquidity issue with eToken’s DonateToReserve function. Reportedly, Euler’s intruder took advantage of these vulnerabilities to create a deceptive impression that the platform had a low number of deposited eTokens and a fictitious liability over unburned dTokens.

As per the information provided by Chainalysis, the hacker obtained initial funding from authorized mixer Tornado Cash for transfer charges (gas fees) and to establish contacts involved in the hack. According to credible sources, the intruder stole $30 million worth of DAI from the decentralized finance (DeFi) protocol Aave and transferred $20 million to Euler’s platform. Following this occurrence, the criminal utilized the rest of the $10 million DAI to repay a portion of the obtained debt. (dDAI). After completing the breach, the intruder returned a portion of the stolen funds to Tornado Cash.

In addition, Chainalysis observed that EUL, Euler’s native token, experienced a decline of over 45 percent.

AuthorKelly Cromley

Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.