Euler Finance team demands hacker return 90% of stolen funds

The Euler Finance developers demanded that the hacker who breached the DeFi protocol return 90% of the stolen funds within 24 hours. Otherwise, the team would offer a $1 million reward for any information leading to the hacker’s arrest.

euler just sent an on-chain message to the hacker pic.twitter.com/0wKIW51NjM

— 0xngmi (llamazip arc) (@0xngmi) March 14, 2023

The attacker used an exploit in the mechanism instant loans of Euler Finance by posting an unsecured collateral. Due to a bug in the smart contract, the hacker was able to liquidate the debt and withdraw assets worth $196 million from the platform.

The project team notified law enforcement in the United States and the United Kingdom. In addition, Euler Finance asked analytics firms Chainalysis and TRM Labs to assist in the investigation of the incident.

“If 90% of the funds are not returned within 24 hours, we will offer a $1 million reward for information that leads to your arrest and the return of all assets,” the on-chain message said.

The threat was preceded by an attempt to negotiate — Euler Finance proposed discussing ‘any potential steps’.

yesterday’s message pic.twitter.com/VCqJYpxYIe

— 0xngmi (llamazip arc) (@0xngmi) March 14, 2023

The community questioned the hacker’s willingness to cooperate.

Earlier, Euler Finance disabled the vulnerable module EToken, freezing deposits. According to auditing firm Sherlock, the issue remained undetected for eight months.