Euler Finance, a decentralized finance (DeFi) protocol that provides crypto lending services, was hacked on Monday, March 13. Smart Contract Auditor BlockSec. On the other hand, other blockchain research firms like Peckshield and Meta Celluth estimate that the stolen funds could be as high as $195 million (roughly Rs. 1,603 crores). This incident is the biggest crypto hack of 2023 so far.
The hackers, who remain anonymous, may currently have the stolen funds at ETH 96,833, which is $153 million (roughly Rs. 1,258 crores) in their possession. The rest is split between Dai (DAI), Wrapped Bitcoin (WBTC), Stacked Ether (sETH), and USD Coin (USDC) cryptocurrencies, BlockSEC said.
Founded in London, UK, the protocol allows its users to deposit their crypto holdings with it and earn interest. It was launched in 2020 by fintech entrepreneurs Michael Bentley, Doug Hoyte and Jack Pryor.
Soon after, Blocksec security firms issued an alert about hack attackEuler Finance posted an update on the situation.
We are aware and our teams are currently working with security professionals and law enforcement. We will release further information as we have it. https://t.co/bjm6xyYcxf
— Euler Labs (@eulerfinance) March 13, 2023
At present, detailed information about this attack is awaited.
Crypto analytic firm Meta Celluth, which tracked the hack, has claimed that the attacker may have taken advantage of a multichain bridge to transfer funds. BNB Smart Chain (BSC) To Ethereum In the attack launched and carried out on Monday.
So far Euler Finance has not officially disclosed how the hack might have happened.
defi protocolWhich provide anonymity and autonomy to the user to control their funds, are built on the blockchain network and are not controlled by any bank, broker or intermediary.
Hackers targeting DeFi protocols often identify vulnerabilities in the open-source nature of the platform’s code to gain unauthorized access and process their criminal purposes. 2022 saw a plethora of hack attacks on DeFi protocols.
Hackers managed to steal $3.8 billion (roughly Rs. 31,100 crores) from the crypto-dominated DeFi sector last year, recently reports Was told by Chainalysis.
Meanwhile, this year has been relatively quiet so far in terms of large-scale cryptocurrency hacks.
In January this year, a total of 24 crypto exploits were reported by PeckShield. These exploits amounted to $8.8 million (roughly Rs. 72 crores), which is significantly lower than the $120 million (roughly Rs. 980 crores) worth of crypto reported in January 2022.
Losses during crypto exploits drop by 93 percent in January 2023, compared to the same month last year, Peckshield Said In its February report, however, that changed today.