Crypto Lender Euler Finance Falls Prey To $197 Million DeFi Flash Mortgage Assault

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Crypto Lender Euler Finance Falls Prey To 7 Million DeFi Flash Mortgage Assault


Abstract:

  • Euler Finance was drained of DAI tokens, staked Ether, USDC, and wrapped Bitcoin after a flash mortgage assault.
  • On-chain safety corporations BlockSec and Peckshield stated losses from the exploit had been over $190 million in cryptocurrencies.
  • The DeFi lender was uncertain about who attacked its protocol at press time however Euler promised to replace customers as extra info involves gentle.

Roughly $197 million in crypto was stolen from Euler Finance after the decentralized finance lending protocol suffered a flash mortgage exploit on Monday round 4:50 am ET, on-chain safety corporations BlockSec and Peckshield confirmed.

The DeFi lender misplaced $136 million in staked Ether (stETH), $34 million in Circle’s USD Coin (USDC), roughly $19 million in wrapped Bitcoin (WBTC), and a few $8.7 million in Maker’s DAI stablecoin in the course of the flash mortgage assault.

Euler Finance was but to establish the hacker or slender down precisely how they deployed their flash mortgage assault. The decentralized lender contacted regulation enforcement and promised to publish extra data on the incident as quickly as potential, per experiences.

BlockSec famous that the assault is tied to a deflation exploit involving the Multichain bridge from February. The exploiter bridged funds from Binance Good Chain to Ethereum to launch the assault, BlockSec tweeted.

Following the exploit, Euler’s native token EUL dipped as a lot as 45% in value. The token traded round $3.40, down from $6.1 within the early hours of Monday.

Crypto Lender Euler Finance Falls Prey To $197 Million DeFi Flash Loan Attack 10
EUL/USD by CoinMarketCap

DeFi Property Stolen In A Flash

Flash mortgage assaults are frequent within the DeFi house as hackers usually use this methodology to take advantage of loopholes within the good contract codes deployed by protocols. Throughout such crypto hacks, the attacker borrows a large quantity of belongings with out posting enough collateral, or any collateral in some instances.

After, the attacker will drain the borrowed funds from the protocol and full the exploit. Flash mortgage assaults additionally has a downside because the exploiter should shortly repay the mortgage or endure vital losses.

Euler Finance Joins Exploited DeFi Protocols

Euler Finance was the newest DeFi protocol rocked by an exploit months after the decentralized ecosystem had its worst month of assaults in October 2022. Reviews stated over $3 billion was stolen from decentralized initiatives.



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