Euler Finance's offer to hacker: Keep $20M or face the law
On March 13, a hacker launched a $196 million flash loan attack on Euler Finance. In response, he is attempting to strike a deal with the attacker by demanding the return of 90% of the stolen funds within 24 hours. Therefore, Euler Finance’s offer to the hacker to Keep $20M or can face the law.
If the attacker fails to fulfill, Euler has threatened to launch a $1 million reward for information that leads to the arrest and the return of all funds. The requirement was issued on March 14, with Euler Labs sending 0 ETH to the attacker along with the message.
Euler Labs sent a more conciliatory message to the attacker the previous day. In this massage, he asks if they would be open to discussing potential next steps. If the attackers return 90% of the stolen funds, they will return $176.4 million and keep $19.6 million.
Despite this, many observers have noted that the hacker has little incentive to follow through with the deal. Few suggest that the hacker may offer a bidding war, offering anyone who tracks them down $million not to tell Euler Labs.
Euler Labs has already taken action to address the situation. He works with law enforcement agencies in the United Kingdom and the United States. He is engaging platforms for blockchain intelligence, such as Chainlysis and TRM Labs. The company also works with the broader Ethereum community to help track down the hacker.
The landing platform has stopped the flash loan attack by blocking deposits and vulnerable donation functions. However, the team noted that they did not discover the weakness during the eight-month smart contract audit on the chain until its discovery on March 13.
Overall, Euler Finance’s offer to the hacker to Keep $20M or can face the law. Yes, the response to the attack reflects the broader challenges DeFi platforms face in the face of increasing cyber threats.
At the same time, many DeFi protocols offer decentralization and anonymity as key selling points. These features can also make them vulnerable to attacks.
As the DeFi ecosystem grows, regulators will likely seek to impose greater scrutiny and oversight on these platforms to mitigate these risks.