• Euler, an Ethereum-based lending protocol, was hacked on Monday for nearly $200 million.
• The hacker used a sophisticated scheme to exploit one of Euler’s smart contracts using flash loans.
• Euler hopes to recover the stolen funds but its native token EUL has suffered a 50% drop in the last 24 hours.
Euler Protocol Hacked
On Monday, March 14, 2023 at 10:40 AM GMT, users of decentralized finance (DeFi) protocol Euler lost millions of dollars denominated in various tokens and coins. Blockchain security company PeckShield tweeted early Monday morning that the hacker had used a sophisticated scheme to exploit one of Euler’s smart contracts using flash loans.
Stolen Funds
The hacker managed to steal 8.87 million DAI, 849 WBTC, 85,690 stETH and 34.4 million USDC from the platform in total worth nearly $200 million. On-chain sleuth ZachXBT suggested that the same hacker is responsible for exploiting another Binance Smart Chain (BSC)-based protocol last month and moving the funds through crypto mixer Tornado Cash.
EUL Token Price Drop
Following the news of the attack, Euler’s native token EUL plunged significantly with it currently trading at $3.08 – down 50% in the last 24 hours according to data from CoinGecko.
Broader Industry Impact
The crypto space has been suffering for most of this year due to lawsuits, stablecoin issues and Operation Chokepoint 2.0 – all of which have been choking an already vulnerable industry even further with this latest attack on Euler being just another hit it has taken recently.
Retrieving Stolen Funds
Despite the magnitude of this attack on DeFi protocol Euler there is still hope that some or all of these stolen funds can be retrieved as they indicated that there is a possibility they’ll be able to do so eventually.