The recent hack on Euler Finance is a stark reminder of the inherent risks associated with the decentralized finance (DeFi) ecosystem. The $197 million hack, the biggest DeFi attack in 2023 so far, sent shockwaves through the industry, leaving many investors reeling from the financial loss.
While the news of the hacker returning 3,000 ETH worth $5.4 million to Euler Finance’s deployer address may have brought some hope to the affected investors, the chances of the entire loot being returned remain slim. No more outbound transactions, other than the aforementioned ones, have been recorded yet.
The hacker’s seemingly good intentions are a mere drop in the ocean when compared to the massive sum that was stolen. Despite returning a paltry amount, it is highly unlikely that the hacker will return the remaining stolen funds anytime soon.
It is disheartening to note that despite the $1 million bounty announced by Euler Finance to track down the hacker and retrieve the stolen funds, the return of a mere 3,000 ETH leaves much to be desired. The hacker’s action seems more like a publicity stunt than a genuine effort to make amends for the wrongdoing.
Today the Euler Foundation is launching a $1M reward in the hope that this provides additional incentive for information that leads to the Euler protocol attacker’s arrest and the return of all funds extracted by the attacker.
— Euler Labs (@eulerfinance) March 15, 2023
The exploit, which involved multiple transactions, further highlights the need for greater vigilance and security measures in the DeFi space. The hacker’s ability to move the funds from the BNB Smart Chain to Ethereum via a multichain bridge underscores the urgency for greater regulation and oversight in the DeFi ecosystem.
It is also worth noting that the stolen funds were seen being moved into crypto mixer Tornado Cash soon after the $1 million bounty was announced against the attacker. The demand made by Euler Finance that the hacker returns 90% of the stolen funds within 24 hours to avoid possible jail time seems to have fallen on deaf ears.
The return of 3,000 ETH may have been a glimmer of hope, it is unlikely that the hacker will return the entire loot of $197 million anytime soon. The DeFi industry needs to take this hack as a wake-up call and work towards developing more secure systems and greater regulatory oversight to protect investors.
