Popular lending platform, Euler Finance has suffered a massive exploitation. Certik, a blockchain security firm was the first to raise this alarm in its Monday Twitter post. According to the firm, the flash loan attack on Euler led to the loss of about $197 million, including 8.87 million $DAI, 34 million $USDC and about 85.8k $stETH.
Worthy of note that a renowned on-chain sleuth ZachXBT also confirmed the attack. In its post, ZachXBT identified black hats as the perpetuator of the exploitation. According to the on-chain sleuth, the nature of this Euler exploitation and the manner in which the funds were moved was quite similar to the hack reportedly unleashed on a BSC-based protocol last month by the hacker. Then, black hats reportedly moved the stolen funds to a controversial crypto mixer, identified as Tornado Cash.
Euler Finance working with security professionals to investigate the attack
Now, the lending protocol has come out to say it is aware of the attack on its network. Euler Finance further that it has started working with relevant security agencies to unravel the circumstances behind the attack. It, however called for calm and promised to release further information as soon as possible.
It is regrettable that this attack is coming barely a few months after Euler Finance partnered with Sherlock, a risk management protocol. Worthy of note that it engaged in the partnership to strengthen the security of its network. According to findings, Sherlock offers unique, affordable and reliable security system that help to prevent smart contract exploitations. Occasioned by the partnership, Sherlock reportedly carried out an audit on the smart contract of Euler finance. However, the latest exploitation of the lending platform thus raises questions as regards the efficiency of the incorporated Sherlock security system.
Meanwhile, Euler Finance is not the only crypto firm that has suffered exploitation in 2023. In the previous week, Hedera, an open-source proof-of-stake platform suffered the same fate on its smart contracts. As reported by Binbits, the attacker compromised the Smart Contract Service Code of Hedera to steal from its liquidity pool. Also, LaunchZone, a non-custodial crypto exchange also suffered an exploitation on the BNB chain in late February. Reportedly, the attack led to the loss of more than $700,000 worth of assets. Now, with the attack on Euler finance, it is not an overstatement that cyber-exploitations are now on the rise.