After the incident flash loan Loss of nearly 200 million USD recently, Euler Finance lending protocol will be deployed “bug bounty” $1 million to track down the attacker if he doesn’t return the money.
In an on-chain message sent to the attacker on March 15, Euler Finance announced that it would offer a $1 million “bug bounty” for tracking arrests. hackers stole nearly 200 million USD of protocol.
The message content is as follows:
“If 90% of the money is not returned within 24 hours, tomorrow we will offer a reward of 1 million USD to arrest you and get all the money back.”
yesterday’s message pic.twitter.com/VCqJYpxYIe
— 0xngmi (llamazip arc) (@0xngmi) March 14, 2023
On the same day the incident occurred (March 13), Euler Finance sent the attacker a compromise message as follows:
“We know you are the one who carried out this morning’s attack on the Euler platform. We are writing to see if you would be willing to talk to us about any next steps.”
As Kyptos reported the incident, the vulnerability that makes Euler vulnerable lies in the “donateToReserves” function that allows users to load EToken without checking the account’s health index. As a result, hackers can easily withdraw assets from the platform by liquidating their own “bogus” loan.
The hacker then quickly dispersed the amount of money to different wallets, and transferred a part to Tornado Cash to hide the trace.
As revealed by Euler, this vulnerability has existed for the past 8 months without anyone finding out, even though the project conducted an audit and even held a bug bounty of 1 million USD during that time.
After the attack, the lending platform made a number of efforts to remedy the situation such as: disabling EToken; contact blockchain security parties to investigate recovery of funds; information to US authorities about the incident.
One of our auditing partners, @Omniscia_sec, prepared a technical post-mortem and analyzed the attack in great detail. You can read their report here:https://t.co/u4Z2xdutwe
In short, the attacker exploited vulnerable code which allowed it to create an unbacked token debt… https://t.co/FGnPqvYUGB
— Euler Labs (@eulerfinance) March 14, 2023
The EUL price is currently around the $2.59 mark, down nearly 16% in the last 24 hours.
Synthetic Kyptos
