Exploiter of Euler Finance Returns Another $37.1M Worth of ETH and DAI

UTC by Bhushan Akolkar · 2 min read
Exploiter of Euler Finance Returns Another $37.1M Worth of ETH and DAI
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Over the last week, the attacker of Euler Finance has released a total of $138 million which is 70% of the total amount stolen from the Euler Finance protocol. 

Earlier this month, a major decentralized finance (DeFi) hack rocked the crypto market with the hacker stealing nearly $200 million by exploiting the Euler Finance protocol. However, as per the latest development, the hacker has been releasing partial funds. On-chain data shows that on Monday, March 27, the hacker returned an additional $26.5 million worth of Ether (ETH) to the deployer account of Euler Finance.

There were two back-to-back transactions from the hacker’s address to the Euler deployer account. On Monday evening, 6:21 PM UTC, the address linked to the hacker sent 7,738.05 ETH worth $13.2 million to the Euler deployer account. Within the same block, another address associated with the attacker sent the same amount of ETH. As a result, the hacker addresses sent a total of 15,476.1 ETH (around $26.4 million) to the same deployer account.

Later, by 6:40 PM UTC, the first wallet sent another transaction to the Euler deployer account for $10.7 million worth of the Dai stablecoin. Thus, all three transactions have cumulatively returned a total of $37.1 million.

As per the Etherscan data, the addresses sending these ETH to the Euler deployer account have been labeled “Euler Finance Exploiter 2”. This seems to imply that the addresses are currently under the control of the attacker.

Euler Exploit: Total Return of Funds in ETH

Over the last week, the hacker has been returning some good amount of funds to the Euler deployer account. Last week on March 25, the hacker returned a total of 58,000 ETH (worth over $101 million at the time). So far the hacker has returned a total of $138 million which is 70% of the total amount stolen from the Euler Finance protocol.

This was one of the major hacks since several protocols within the Ethereum ecosystem were dependent on Euler in one or the other way. As per the report, at least 11 protocols announced that they suffered indirect losses from the attack.

As per the analysis from Slowmist, the exploit occurred due to a faulty function using which the hacker managed to donate their lent Dai to a reserve fund. This way, the attacker managed to push their own account into insolvency. The attacker then used a separate account to liquidate the first account at a steep discount, thereby profiting from this discount.

After draining Dai stablecoins through this first attack, the attacker repeated the same for multiple accounts. In total, the attacker managed to drain $197 million from the Euler protocol.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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