Ethereum-based non-custodial lending protocol Eurler finance faced a flash lending attack on March 13, in which the attacker managed to steal millions in Dai (DAI), USD Coin (USDC), Staked Ether (StETH ) and wrapped Bitcoin (WBTC).
According to on-chain data, according to the latest update, the hacker carried out multiple transactions, stealing almost $196 million. The attack has already become the biggest hack of 2023. The breakdown of the stolen funds is as follows:
According to cryptanalysis firm Meta Seluth, the attack correlates with the deflation attack from a month ago. The attacker used a multi-chain bridge to transfer the funds from the BNB Smart Chain (BSC) to Ethereum and launched the attack today.
ZachXBT, another prominent on-chain detective, reiterated the same, saying that the movement of funds and the nature of the attack appear quite similar to the hackers who stole a BSC-based protocol last month. After attacking a protocol at BSC, the funds were deposited into the cryptocurrency mixer; Tornado Cash.
The stolen funds are currently located at the following hacker addresses:
- 0xebc29199c817dc47ba12e3f86102564d640cbf99 (Contract) – 8,877,507.34 DAI
- 0xb2698c2d99ad2c302a95a8db26b08d17a77cedd4 – 8,080.97 ETH
- 0xb66cd966670d962c227b3eaba30a872dbfb995db – 88,752.69 ETH and 34,186,225.91 DAI
Euler Finance has acknowledged the issue and has stated that it is working with security and law enforcement professionals to resolve it.
We are aware and our team is currently working with security professionals and law enforcement. We will release further information as soon as we have it. https://t.co/bjm6xyYcxf
—Euler Labs (@eulerfinance) March 13, 2023
Euler Finance raised $32 million in a funding round last year involving FTX, Coinbase, Jump, Jane Street, and Uniswap.
Euler Finance became very popular for offering Liquid Staking Derivatives (LSD) services. LSD is a relatively new type of token that allows stakers to increase potential profit by unlocking liquidity for PoS-based cryptocurrencies such as Ether (ETH). Currently, LSD accounts for up to 20% of the total value locked in DeFi protocols.
This is a developing story, and will be updated as soon as new information is available.
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