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Crypto Hack: Euler Labs Celebrates $190+ Million Recovery Funds

Euler has recovered the hacker funds

After twenty-three days that Euler Finance was drained of $196 million in a flash loan attack, the decentralized finance (DeFi) protocol has successfully recovered funds taken from the protocol after negotiations.

While Euler Labs did not reveal the exact amount that was refunded by the hacker, it stated that the $1 million reward campaign launched by the Euler Foundation will no longer be accepting new information. 

Recall that the Euler Finance hacker orchestrated a couple of transactions on March 13, which led to the draining of millions of dollars in various tokens comprising DAI, USD Coin, staked Ether (StETH), and wrapped Bitcoin (WBTC).

In light of the development, Euler’s total value locked inside its smart contracts dropped significantly from $311 million to $10.37 million. 

Due to the unfortunate incident, more than 10 different decentralized finance (DeFi) protocols including Balancer, Yearn, finance and Yield farming Protocol either lost funds or paused transactions. 

Meanwhile, Euler Finance took proactive steps on March 14 to recover stolen funds by disabling its vulnerable token module as well as the donation function. 

Euler Finance

In the same vein, it promptly entered into a partnership with auditing companies to identify the primary cause of the exploit. 

The DeFi protocol also proposed a bounty to the hacker, stating that the hacker should return 90% of the stolen funds. Additionally, Euler Finance placed a $1 million reward for anyone that could provide information about the hacker. 

Like Euler Finance, Like Allbridge  

There are no mincing words that the recovery pattern between Euler Finance and Allbridge are similar. 

On April 4, Allbridge protocol equally revealed that the hacker had returned $464,500 out of the $573K stolen funds. The remaining fund was given to the hacker as a bounty.

In the same vein, Euler Finance seems to have reached a truce with the hacker which led to the refund of the biggest part of the stolen funds. 

While the recovery of stolen funds is a sign of relief to the affected teams and users, the increasing spate of bounty models should be discouraged in its entirety. 

 

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