On March 16, the $200 million Euler Finance lending protocol hack took an unexpected turn when the perpetrator apparently turned down the $20 million offer by mixing 1000 ETH (worth $1.65 million) into through Tornado Cash.
According to PeckShield, the attacker made ten transactions in Tornado Cash. In each one they sent 100 ETH to an intermediate address. As a result, the hacker has now obfuscated 1,000 ETH in Tornado Cash and has 1,500 ETH at the address used to carry out the attack, making it extremely difficult for Euler Finance (and law enforcement) to trace the IRL.
#PeckShieldAlert @eulerfinance exploiter on the move
~1,000 $ETH in Tornado Cash through the intermediary address 0xc66d…c9ahttps://t.co/LAkY66YpoF pic.twitter.com/0XhQV1nbgn— PeckShieldAlert (@PeckShieldAlert) March 16, 2023
$20 million wasn’t enough
On March 15, Euler Finance publicly offered the attacker a deal in which they could keep 10% of the $200 million stolen if they returned the rest. Refusing to do so would end with Euler Finance offering a $1 million reward to anyone who provides information that led to his capture.
But according to string datathe hacker didn’t care about Euler Finance’s suggestions and instead mixed the cryptocurrencies into Tornado Cash just hours after the proposal went public.
But it wasn’t all bad news; the hacker decided to send 100 ETH to one of the victims after his pleas. One of the users who lost his funds told the hacker that he was a humble person who could lose all of his life savings if he refused the reward offered by the protocol.
WOW!@eulerfinance The exploiter returned 100 $ETH to a guy who begged for his money back as it was his life savingshttps://t.co/Gz9aCUZB0H pic.twitter.com/DhZBenqtuS
— Wazz (@WazzCrypto) March 16, 2023
Euler Finance lost $200 million through a quick loan attack
As recently reported crypto potatoEuler Finance lost nearly $200 million earlier in the week after a vulnerability that had been hidden for eight months was exploited.
according to autopsy report Published by cybersecurity firm Omniscia, audit partner of Euler Finance, the attack originated from a vulnerability in the protocol’s donation mechanism that allowed the hacker to create an over-leveraged position that, when liquidated in the same block, caused it to be artificially plunged, keeping $200 million divided into DAI, USDC, WBTC and ETH.
Omniscia concluded that the attack arose from an incorrect donation mechanism introduced in the latest protocol update (eIP-14), which they never analyzed.
“The EToken::donateToReserve feature that is at the center of this vulnerability was not within the scope of any audits performed by Omniscia. As such, the code causing the vulnerability was never within the scope of any audits conducted by our team.”
At this point, it is unknown if the hacker intends to return the remaining ether to the protocol to avoid being pursued by white hackers, blockchain traceability companies, and even law enforcement.
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