Euler Finance: Hacker steals around $197M in 2023’s largest hack

ambcrypto.com:

Ethereum-based noncustodial lending protocol Euler Finance was targeted by a flash loan attack on 13 March. The attacker was successful in stealing almost $197 million in Dai, USD Coin (USDC), staked Ether (StETH), and wrapped Bitcoin (WBTC).

Euler Finance acknowledged the exploit on Twitter and stated that it is currently working with cyber security and law enforcement professionals to resolve the issue.

— Euler Labs (@eulerfinance) March 13, 2023

According to the most recent update, the exploiter stole nearly $197 million in multiple transactions.

Crypto analytic firm Meta Sleuth shared on Twitter that the attack was related to the deflation attack from a month ago. The hacker launched the attack today by using a multi-chain bridge to transfer funds from the BNB Smart Chain (BSC) to Ethereum.

Another prominent on-chain security expert, ZachXBT, noted that the movement of funds and nature of the attack appears to be very similar to black hats who exploited a BSC-based platform in February. The funds were transferred to Tornado Cash after exploiting a protocol on BSC a few weeks ago.

Last year, Euler Finance raised $32 million from San Francisco-based VC firm Haun Ventures in a funding round in which FTX, Coinbase, Jump, Jane Street, and Uniswap participated.

Euler Finance has become well-known over the year for its liquid staking derivatives (LSDs) services. These tokens allow investors to boost their potential returns by unlocking liquidity for staked cryptocurrencies such as Ethereum.

LSDs currently account for up