On April 4th, 2023, Euler Finance announced that the hacker responsible for draining $200 million in assets had returned all “recoverable funds”. This news came after a successful negotiation between Euler Labs and the hacker.
Euler Finance is a decentralized finance (DeFi) lending protocol that was exploited on March 13th by an unknown hacker. The hacker managed to drain over $200 million in assets from the platform, leading Euler Labs to offer a $1 million bounty for information that would lead to their capture.
Fortunately, it appears that no further action was necessary as the hacker agreed to return all possible recoverable funds after negotiations with Euler Labs. In total, 177 million worth of assets have been recovered from the exploit.
The timeline of events began on March 13th when an unknown hacker exploited a vulnerability in the Euler protocol and drained millions of dollars worth of assets from users’ wallets. On March 16th, Euler Labs announced they were offering a $1 million reward for information leading to the capture of the hackers behind the exploit.
Then, on April 4th, Euler Finance reported that all “recoverable funds” had been successfully returned following successful negotiations with the exploiter. This news brought an end to their $1 million bounty and marked a major victory for both Euler Labs and its users who had lost money in the exploit.
This incident serves as an important reminder of how vulnerable DeFi protocols can be and highlights why security measures must always be taken seriously when dealing with digital assets. It also shows how quickly these issues can be resolved if handled properly and demonstrates how effective negotiations can be when dealing with malicious actors.