Decentralized finance (DeFi) protocols continue to be targeted by hackers. This Monday (13th), the victim was Euler Finance, and the total amount of cryptocurrency lost exceeded 1 billion reais.
As a result, Euler (EUL), the cryptocurrency associated with the project, lost half of its value within minutes of the hack being revealed.
In a statement, the Euler Labs team acknowledged the loss and said it was already working with security professionals and law enforcement. However, part of the funds have already been sent to Tornado Cash, which will make the team work difficult.
DeFi Euler Finance Protocol Loses 1 Billion Reais in Hack
How can a company be notified in minutes that it has lost 1 billion reais? The team at security firm PeckShield posted a link to one of the transactions directly, tagging Euler Finance’s profile.
“Hey @eulerfinance: you might want to check this out”
In total, the estimated damages are approximately US$ 197 million, more than R$ 1 billion. As detailed by SlowMist, another security firm that is investigating the case, the hacker only needed six transactions in his attack.
To make matters worse, SlowMist also noticed that some of the funds had been transferred to Tornado Cash. That said, unlike other hackers, this hacker does not intend to return the money in return for a reward.
“55 minutes ago, the hacker’s address transferred 100 ETH to Tornado Cash,” wrote SlowMist this morning.
In a brief statement, the Euler Lab team was made aware of the situation.
“We understand that our teams are working with security professionals and police. We will release more information as it becomes available.”
We know and our teams are currently working with security professionals and law enforcement. We will post further information as it becomes available. https://t.co/bjm6xyYcxf
– Euler Labs (@eulerfinance) March 13, 2023
Euler Cryptocurrency (EUL) Melts in the News
As expected, cryptocurrencies associated with the project saw heavy losses on Monday (13th) morning after Euler Finance disclosed a loss of 1 billion Brazilian reals. As the chart below shows, Euler (EUL) lost 50% of its value in a matter of minutes.
Cryptocurrencies tied to the Euler Finance protocol crashed after the hack was confirmed. Source: CoinMarketCap.
In the end, PeckShield still tried to help the project, revealing how hackers managed to steal 1 billion reais in cryptocurrency from Euler Finance.
“Hacking is possible due to flawed logic in your donation and liquidation. Specifically, donateToReserves needs to ensure that the donor is still overcollateralized. Liquidation needs to ensure the correct loan-to-collateral conversion ratio.”
2/ Due to the logic error of its donation and liquidation, hacking is possible. Specifically, donateToReserves needs to ensure that the donor is still over-collateralized. Liquidation needs to ensure the *correct* conversion rate from borrowed to pledged assets. pic.twitter.com/dsHUP1orRP
— PeckShield Inc. (@peckshield) March 13, 2023
Source of information: Compiled from LIVECOINS by 0x Information.Copyright belongs to the author, without permission, may not be reproduced