On March 16, Euler Finance, a decentralized finance (DeFi) protocol, introduced that it had been the sufferer of a large hack through which a complete of $197 million was stolen. This was shortly dubbed the largest DeFi hack of 2023 thus far and despatched shockwaves by way of the crypto neighborhood.
The hacker was capable of drain the funds by way of a collection of a number of transactions, after which used a multichain bridge to switch the stolen funds from the Binance Good Chain to Ethereum. The hacker then moved the stolen funds into the crypto mixer Twister Money, making it troublesome to trace the funds.
Nevertheless, on March 18, there was a shocking improvement when the hacker reportedly returned round $5.4 million in Ether to Euler Finance’s deployer handle. The funds have been despatched in three transactions, and it’s unclear why the hacker determined to return the funds.
This isn’t the primary time {that a} hacker has returned stolen funds after a high-profile hack. In 2016, the hacker who stole $55 million from the DAO returned the stolen funds, citing a “bug” within the code. It’s potential that the hacker behind the Euler Finance hack had a change of coronary heart, or was pressured to return the funds after Euler Finance introduced a $1 million reward for data on the hacker’s id.
Euler Finance has demanded that the hacker return 90% of the stolen funds inside 24 hours to keep away from potential jail time. It stays to be seen whether or not the hacker will adjust to this demand, or whether or not the remainder of the stolen funds will likely be returned.
The Euler Finance hack highlights the continuing safety dangers within the DeFi area. DeFi protocols are designed to be open and clear, however this additionally makes them weak to assaults. It’s important for DeFi protocols to take measures to enhance their safety, resembling performing common audits and implementing multi-factor authentication for consumer accounts. Solely by doing so can DeFi protocols achieve the belief of customers and buyers alike.
