DeFi protocol Euler Finance suffers a $197m hack

Updated Mar 16, 2023 at 9:24 AM UTC

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DeFi protocol Euler Finance suffers a $197m hack

Decentralized finance (DeFi) platform Euler Finance has been targeted in a flash loan attack, losing $197 million worth of DAI stablecoin, WBTC, stETH, and USDC. Euler Labs is working with security experts and law enforcement to fish out the attackers.

Euler Finance hacked

Euler Finance, a decentralized finance (DeFi) non-custodial lending and borrowing protocol powered by the Ethereum blockchain network, is the latest victim of a multi-million flashloan attack.

Per a tweet by blockchain analytics platform, PeckShield, the hacker executed the heist in a flurry of transactions, stealing approximately $197 million worth of cryptocurrencies from the network.

The bad actor took advantage of a loophole in Euler Finance’s donation and liquidation logic, to orchestrate the attack.

1/ @eulerfinance was exploited in a flurry of txs on Ethereum (one hack tx: https://t.co/L7ddZhHNq5), leading to the lost of ~$197m from the project.
— PeckShield Inc. (@peckshield) March 13, 2023

Euler Labs, the team in charge of the DeFi protocol say they are aware of the attack and collaborating with security agents and law enforcement to find the hackers.

We are aware and our team is currently working with security professionals and law enforcement. We will release further information as soon as we have it. https://t.co/bjm6xyYcxf
— Euler Labs (@eulerfinance) March 13, 2023

Euler Finance has $9.8 million in total value locked according to Defi Llama.

The crypto space lost more than $3 billion to bad actors in 2022 and the ugly incidence of hacks and heists has continued this year. As recently reported by crypto.news, DeFi protocols lost more than $21 million to hackers last month.