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Euler DeFi Protocol Faces Loss of $177M In Major Attack

  • Ethereum-compliant lending protocol Euler Finance lost $8 million in an attack.
  • In 2022, it raised $32 million from industry giants Coinbase, Jump, Jane Street, Uniswap, and defunct FTX.
  • BlockSec alerted the crypto market to the $177 million attack on the protocol.

The EUL token price of Euler Finance experienced a sharp decline of 26.2% due to the assault on its lending protocol. The crypto community was alerted to the attack by BlockSec, a firm that audits smart contracts. The project suffered a loss of $177 million through four transactions, which occurred one year after a funding round that featured big names such as Coinbase, Jump, and the now-defunct crypto exchange FTX.

The crypto market participants were alerted to the attack by BlockSec, a firm that audits smart contracts. The firm initially suspected theft of $8 million, but further analysis revealed a loss of $177 million through four transactions.

Moreover, Euler Finance gained attention in 2022 when it secured funding from notable industry players such as Coinbase, the now-defunct exchange FTX, Jump, Jane Street, and Uniswap.

DeFi attacker's address on Ethereum
The attackers’ address on Etherscan

Meanwhile, in September 2022, IntoTheBlock announced the creation of a risk-monitoring dashboard for Euler Finance. The DeFi ecosystem continues to require risk management and early threat detection to ensure its sustainability.

After news of the attack on the lending protocol broke, its ERC-20 token plunged by 26.2%. Falling from $6.14 to $4.44 in a matter of hours. Crypto expert ZachXBT predicts a slim chance of recovering the hacked funds and characterizes the attack as “blackhat.”

The expert has linked the attacker’s address to a previous exploit of a protocol on the Binance Smart Chain. Where the attacker then deposited funds into the Tornado mixer. This presents a difficulty for the Euler Finance team, who have assured their users that an investigation is underway.