Approximately $200 million in crypto assets were reportedly stolen in the Euler Finance attack. This news is coming in as the decentralized finance lending platform was hacked according to various reports.
Approximately $200 Million in Crypto Assets Reportedly Stolen In Euler Finance Attack
Threat actors stole almost $200 million worth of Cryptocurrencies from the Euler Finance lending protocol which was reported earlier this week by the media.
Euler as you should know is a non-custodial Decentralized Finance (DeFi) protocol on Ethereum that lets users lend and borrow just about any form of crypto asset. Euler labs, the company behind the protocol confirmed the incident on Twitter stating that the security professionals as well as the police have been brought up to speed in investigating the matter.
How the Incident Occurred
The incident via BleepingComputer exploited a poorly designed flash loan feature that let users borrow funds “in a flash”, and then return them just as fast. The feature as you should know has a vulnerability that allowed the attackers to borrow a huge sum of money without having to return its value to the service.
“The attackers use an exploit that allows them to manipulate the price of a token or asset on the platform during the few seconds that they hold the lent amount, so when the trade is complete, they are left with a massive profit,” the publication explained.
The Value of Tokens Stolen By the Hackers
The attackers in this very incident stole $8.75 million in the DAI token, $18.5 million in WBTC popularly known as wrapped bitcoin which is a bitcoin on the Ethereum network, $33.85 million in USDC which is a stablecoin whose value is pegged directly to the US dollar, and $135.8 million in stETH which is staked ETH, a liquid staking derivatives token utilized in representing staked Ether on Lido (LDO).
The Stolen Funds Are Being Monitored
And while the media are reporting that the funds in question are being monitored and that it will be difficult for the attackers to convert them into something that can be used and not get confiscated in the process, Blockchain analytics firm Elliptic says that some of the reported stolen tokens made it through the Tornado Cash mixer already which is in other words simply means that they were laundered.
The Euler Token Has Dropped In Value
And following up with the news, the Euler token reportedly dropped from $6.2 to $3.1 in value at press time.