Euler Finance Hacker Repays All Recoverable Assets


  • Euler Finance has today confirmed that the entire recoverable funds have been restored.
  • This ends the $1 million bounty that was issued by the company.
  • The total recovery comes after Euler Finance convinced the hacker to return the money.

Euler Finance has today revealed that all possible refundable funds have been returned a full 23 days after the protocol was hacked.

Euler managed to persuade the hacker to return the majority of the funds in a discussion that led to the return of the entire recoverable assets. The hacker had previously stolen $196 million worth of crypto assets including 8,877,507.35 DAI, 34,413,863.42 USD Coin, 85,818.26 staked Ether (StETH), and 849.14 wrapped Bitcoin (WBTC).

Following the hack, the total value locked (TVL) in Euler Finance smart contracts decreased from over $311 million to $10.37 million.

Euler’s Struggle to Reclaim the Funds

The day after the hack, Euler Labs took firm action to get back the funds and deactivated its vulnerable etoken module and gift function. It also collaborated with auditing firms to determine the source of the hack.

On March 14, Euler sent an on-chain message to the hacker saying:

“Following up on our message from yesterday. If 90% of the funds are not returned within 24 hours, tomorrow we will launch a $1M reward for information that leads to your arrest and the return of all funds.”

Even though the hacker failed to comply with the 24-hour ultimatum, the hacker started shifting funds arbitrarily, mixed some of the funds on Tornado Cash and sent an alleged victim some funds.

Euler Labs on March 21 launched a $1 million bounty reward for any information about the hacker after the hacker stopped communicating with the protocol midway when the protocol was attempting to reach an agreement.

The hacker then began repaying the funds on March 25

The final transaction took place on March 4 where the hacker sent 12 million DAI, and 10,580 ETH in several transactions.

After the entire refund of the funds, Euler Finance stated:

“Because the perpetrator did the right thing and restored the funds, and the $1 million reward campaign initiated by the Euler Foundation will no longer be accepting new information.”

The price of EUL, the native token of Euler Finance, has spiked by over 13% following the news and was trading at $3.9143 at press time.

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