Euler Finance lost $197 million to a hacker who performed a flash loan attack on the network and stole $177 million in four transactions, followed by two more transactions to bring up the total to $197 million. Euler Foundation has now announced a reward of $1 million to anyone who shares the information of the hacker with the team.
This comes days after the Euler Foundation published an ultimatum saying that a reward would be announced if the hacker does not return 90% of the funds within 24 hours.
Needless to say, the hacker did not come forward, and the Euler Foundation has moved on according to the plan. Information shared by a person is likely to assist the team in getting the hacker arrested and extracting all the funds. Ultimatum now appears to be a more lenient option since the Foundation had agreed to drop all charges and not proceed with the legal route.
While the Foundation did say that law enforcement agencies and regulators in the United States of America and the United Kingdom are yet to be on the same page, meaning regulators and enforcement agencies cannot be expected to drop all the charges against the hacker.
Considering how the FTX collapse is being dealt with, the hacker has close to zero chances of escaping from this situation no matter the stand they take.
The recent hack attack of $197 million witnessed the theft of DAI, WBTC, stETH, and USDC worth $8.7 million, $18.5 million, $135.8 million, and $33.8 million, respectively. Arkham Intelligence and BlockSec confirmed the $197 million hack, and Euler Finance deployed all the available security measures to prevent any further loss. A collective effort with the relevant agencies and regulators is ongoing.
Malicious players managed to break into the network and affect several protocols that had direct or indirect exposure to Euler Finance. Angle Protocol, Balancer, and Yearn are a few protocols on the list. It further brought the value of the EUL token down to $3.10, with a fall of 48%.
As per the recent development, the US Justice Department has stepped up its investigations against the hacker in a bid to deliver justice to those who have been affected. The Foundation did roll out an announcement committing to halting the investigations, but that, one can assume, was only from the Foundation’s side. The Justice Department and regulators are working to resolve this and get the funds back. Once the investigation is closed, the only step left will be to charge the hacker with relevant theft sections.TRM Labs and Chainalysis are some of the security firms working with Euler Finance to recover the funds.
The community is seeking to have their funds back as well. AnalysisOnChain claims to have found the attacker, also informing that the email address of the team is now working. Lowcost.eth is believed to have conducted the hack, leaving a trace on Tornado Cash for AnalysisOnChain to find them.