On March 13, the noncustodial lending protocol Euler Finance, which is based on Ethereum, was hit by a flash loan attack. The attacker managed to steal millions of dollars worth of USD Coin, Ether (StETH) and packaged Bitcoin (WBTC).
Biggest crypto hack of 2023
According to data available on the blockchain, the attacker performed multiple transactions and stole nearly $196 million in the process, as per the latest update. The ongoing attack is currently the largest crypto-related hack of 2023.
The crypto analytics firm Meta Seluth claims the attack is related to a deflation attack that happened a month ago. The attacker used a multichain bridge to transfer the money from the Binance Smart Chain (BSC) to Ethereum and launched the attack today.
ZachXBT, another well-known blockchain analyst, confirmed these findings, noting that the transfer of funds and the nature of the attack are very similar to a previous hack of a BSC protocol by black hat hackers. After that hack, the funds were deposited into the crypto mixer Tornado Cash.
The exploit has been confirmed
Euler Finance has exploited the exploit via Twitter confirmed, stating that they are currently working with security experts and law enforcement to address the issue.
Earlier last year, Euler Finance raised $32 million in a funding round involving FTX, Coinbase, Jump, Jane Street and Uniswap.
Finally, Euler Finance has become known for offering liquid staking derivatives (LSDs), which allow stakers to increase potential returns by releasing liquidity for staked cryptocurrency, such as Ethereum. This service has become very popular with users. LSDs are a relatively new type of token.