Euler Finance Approached by Exploiter To Reach an Agreement

On March 21, cryptocurrency sleuth platform CertiK Alert tweeted that the lending platform Euler Finance was contacted by an exploiter through on-chain messages. While the situation could have caused alarm, the exploiter expressed a desire to reach an agreement and stated that they had no intention of keeping anything that did not belong to them.

Following an on-chain ultimatum from Euler Finance demanding the return of funds, the hacker has since offered to open up a dialogue. The message was transmitted via an Ethereum transaction and read as follows:

We want to make this easy on all those affected. No intention of keeping what is not ours. Setting up secure communication. Let us come to an agreement.

Euler Finance took several hours to respond with its own on-chain message, acknowledging the exploiter’s message and requesting a private conversation.

The DeFi platform Euler Finance suffered a major blow on March 13th when it fell victim to a flash loan exploit, resulting in the loss of nearly $196.9 million in various cryptocurrencies. Among the stolen assets were $8.7 million in DAI stablecoin and $18.5 million in Wrapped Bitcoin [WBTC]. The attackers also made off with approximately $135.8 million in staked Ethereum [stETH] and $33.8 million in USD Coin [USDC].

In the aftermath of the attack, Euler Finance attempted to negotiate with the hacker by offering them 10% of the $200 million stolen in exchange for returning the remainder within 24 hours. Unfortunately, this offer was not accepted, prompting Euler Finance to announce a $1 million reward for information leading to the identification of the attacker and the return of all stolen funds.