Euler DeFi protocol faces $177 million loss in massive attack by CoinEdition

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Euler DeFi protocol faces $177 million loss in massive attack
  • Ethereum-compatible lending protocol Euler Finance lost $8 million in an attack.
  • In 2022, it raised $32 million from industry giants Coinbase (NASDAQ:), Jump, Jane Street, and defunct FTX.
  • BlockSec has alerted the crypto market to a $177 million attack on the protocol.

Euler Finance’s EUL token price saw a sharp drop of 26.2% due to an assault on its lending protocol. The crypto community was alerted to the attack by BlockSec, a company that audits smart contracts. The project suffered a $177 million loss through four transactions, which occurred one year after a funding round that included big names like Coinbase, Jump, and the now-defunct FTX.

Crypto market participants were alerted to the attack by BlockSec, a company that audits smart contracts. The company initially suspected $8 million of theft, but further analysis revealed a loss of $177 million through four transactions.

Moreover, Euler Finance gained interest in 2022 when it secured funding from high-profile industry players such as Coinbase, the now-defunct FTX exchange, Jump, Jane Street, and Uniswap.

Address attackers on Etherscan

Meanwhile, in September 2022, IntoTheBlock announced the creation of a risk monitoring dashboard for Euler Finance. The DeFi ecosystem continues to require risk management and early detection of threats to ensure its sustainability.

After news of the attack on the lending protocol broke, the ERC-20 token fell by 26.2%, dropping from $6.14 to $4.44 in a matter of hours. Crypto expert ZachXBT predicts little chance of recovering the hacked funds and calls the attack a “black hat.”

The expert linked the attacker’s address to a previous exploit of a protocol on the Binance Smart Chain, where the attacker then deposited funds into a Tornado mixer. This presents a difficulty for the Euler Finance team, who have assured their users that an investigation is under way.

Euler DeFi protocol faced a loss of $177 million in a major attack that first appeared on Coin Edition.

See the original on CoinEdition

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