Euler DeFi Protocol Experiences Major Losses After Attack
- Ethereum-compliant lending platform Euler Finance was hit by an attack that resulted in a $8 million loss.
- In 2022, it secured $32 million from Coinbase (NASDAQ:), Jump, Jane Street, , and defunct FTX.
- BlockSec identified the $177 million attack and alerted the crypto community.
The EUL token price of Euler Finance suffered a massive hit of 26.2% due to the assault on its lending protocol. BlockSec, a firm that audits smart contracts, was the one to alert the crypto market of the $177 million attack on the protocol. This incident took place one year after the platform gained massive funding from renowned companies such as Coinbase, Jump, and the now-defunct crypto exchange FTX.
BlockSec, a firm that audits smart contracts, was the first to detect the attack. Upon further evaluation, the firm found out that the project had a loss of $177 million through four transactions.
Our system monitored that @eulerfinance is being attacked. Please take action!https://t.co/lINtjcN1Un
— BlockSec (@BlockSecTeam) March 13, 2023
In 2022, Euler Finance gained attention when it raised $32 million from industry giants Coinbase, Jump, Jane Street, and FTX. IntoTheBlock then announced the creation of a risk-monitoring dashboard for the project in the same year.
The attack caused the ERC-20 token price to drop from $6.14 to $4.44 in a matter of hours. Crypto expert ZachXBT believes that it is highly unlikely for the stolen funds to be recovered and describes the attack as “blackhat.” He then linked the attacker’s address to a previous exploit of a protocol on the Binance Smart Chain, followed by the transfer of funds to the Tornado mixer.
The Euler Finance team is currently investigating the attack and has assured its users of the same. The DeFi ecosystem still needs risk management and early threat detection measures to ensure its sustainability.
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