Almost $200,000,000 worth of crypto hacked from DeFi platform Euler Finance
A hacker exploited decentralized finance (DeFi) platform Euler Finance early Monday morning and stole about $200 million worth of crypto, according to blockchain security firm SlowMist.
Euler Finance, a non-custodial lending protocol built on Ethereum (ETH), acknowledged hacked on Monday, noting that it was working with law enforcement and independent auditors and security firms.
Explains SlowMist,
“The attacker used flash loans to deposit funds and then leveraged them twice to trigger the liquidation logic, donating the funds to the backup address and performing a self-liquidation to collect the remaining assets.”
The blockchain security firm notes that the hacker donated funds to the backup address without being subjected to a liquidity check, which “created a mechanism that could directly trigger soft liquidation.”
“When the soft liquidation logic was triggered by high leverage, the return value increased, enabling the liquidator to extract most of the collateral from the liquidated user’s account by transferring only a portion of the liabilities to itself.
Given that the value of the security funds exceeded the value of the liabilities (which were only partially transferred due to the soft liquidation), the liquidator was able to pass its health factor check (checkLiquidity) and withdraw the funds raised.”
In accordance LookonchainEuler lost approximately 96,833 ETH, worth about $166 million at the time of writing, and $34 million worth of the USD-pegged stablecoin DAI.
In its 2023 Crypto Crime Report, blockchain data platform Chainalysis notes that hackers stole a total of $3.8 billion from cryptocurrency businesses last year, the highest annual total ever. The hackers got away with a large majority of the total by targeting DeFi protocols.
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