Euler Finance, a decentralized finance protocol, has suffered a major attack that saw hackers steal digital assets worth nearly $200 million. The theft, which occurred due to a flaw in the protocol’s donation and liquidation functions, marks the largest exploit in 2023 so far.
The attack involved two hackers, one of whom was previously involved in exploiting a random protocol called Fcdep weeks ago.
Euler Finance has stated that it is aware of the incident and is working with law enforcement and security professionals to investigate the hack.
The company’s website shows that its smart contracts have been audited by several security firms, but it is not yet clear if the exploited vulnerability had been included in the scope of work of these audits.
PeckShield has stated that the attackers have moved about 100 ETH of the stolen funds to the cryptomixer Tornado Cash, while the rest of the stolen crypto remains in their wallet.
The identity of the hackers is unknown, and it is not clear if they will be apprehended or if the stolen funds will be recovered.
The incident highlights the ongoing security risks associated with decentralized finance protocols, which are increasingly being targeted by hackers due to the value of the digital assets they hold.