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Fresh loan attack on Euler Finance leads to largest crypto hack of 2023, millions in DAI and stETH stolen

Euler Finance gives an essential update to users on the $197m hack

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TL;DR

  • BlockSec monitored that Euler Finance is being attacked.
  • More than $177 million is suspected to have been stolen.

On March 13, a flash loan attack on the Ethereum-based noncustodial lending protocol Euler finance resulted in an estimated loss of $196 million worth of Dai (DAI), staked Ether (StETH), and wrapped Bitcoin (WBTC). However, this marks the biggest hack of 2023 to date. Furthermore, data from on-chain sources indicates that the attacker carried out multiple transactions.

image 269
The funds that were stolen from Euler Finance. Source: BlockSec

Meta Seluth, a crypto analytics firm, also reported that today’s attack is correlated with the deflation attack one month ago. The attacker used a multichain bridge to transfer funds from the BNB Smart Chain (BSC) to Ethereum and launch the attack.

image 270
Movement of funds from Euler Finance. Source: Meta Seluth

The stolen funds are currently in these hacker addresses:

  • 0xebc29199c817dc47ba12e3f86102564d640cbf99 (Contract) – 8,877,507.4 DAI
  • 0xb2698c2d99ad2c302a95a8db26b08d17a77cedd4 – 8,080.97 ETH
  • 0xb66cd966670d962c227b3eaba30a872dbfb995db – 88,752.69 ETH & 34,186,225.91 DAI

It is essential to know that Euler Finance has confirmed the exploit and is cooperating with security experts and law enforcement to address the issue. They are taking all necessary steps to rectify the situation swiftly.

ZachXBT, a well-known on-chain investigator, noticed similarities between the current attack and one on BSC last month. After exploiting the protocol, the hackers moved their funds through Tornado Cash, a crypto mixer. Last year Euler Finance raised $32 million in an investment round with participation from major firms like FTX, Coinbase, Jump, Jane Street, and Uniswap. The platform has become increasingly popular for its liquidity staking derivatives (LSDs) services.

LSDs are a new type of token that allows stakers to increase potential returns by unlocking liquidity for staked cryptocurrency, such as Ether ETH. LSDs comprise about 20% of the total value locked in centralized finance protocols. 

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Damilola Lawrence

Damilola is a crypto enthusiast, content writer, and journalist. When he is not writing, he spends most of his time reading and keeping tabs on exciting projects in the blockchain space. He also studies the ramifications of Web3 and blockchain development to have a stake in the future economy.

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