Euler Finance Hacker Returns All Recoverable Funds

Euler Finance Hacker Returns All Recoverable Funds

In a surprising turn of events, the hacker responsible for the multi-million dollar attack on Euler Finance has returned all recoverable funds to the decentralized finance lending protocol. The project’s development team made this announcement through their official Twitter account.

The Euler Finance hack occurred on March 13th, resulting in a loss of approximately $200 million, making it the largest loss for crypto in Q1 of 2023. Through a flash loan, the attacker stole various cryptocurrencies, including DAI, USDC, and WBTC, staked Ether, and drained them from the protocol.

Despite Euler Finance’s initial offer to let the hacker keep 10% of the stolen assets, the exploiter ignored the proposal and mixed the stolen crypto in Tornado Cash, making it harder for Euler to trace the IRL. However, on-chain data revealed an interaction between the wallet tied to Euler’s attack and another related to Axie Infinity’s Ronin Network $625 million hack.

In response to an encrypted message from the latter, the Euler exploiter revealed their intention to return the stolen funds to the protocol’s team. The perpetrator returned over $104 million in ETH to Euler Finance four days later. The hacker also apologized for the incident and sent roughly $77 million in two transactions holding 31,000 ETH and 30 million DAI.

With the return of all recoverable funds, Euler Finance has decided to call off the $1 million reward campaign launched initially. The protocol’s development team expressed gratitude to the hacker for returning the funds and emphasized the importance of community trust in the decentralized finance ecosystem.