• Euler Finance has demanded the restoration of 90% of the stolen funds from a hacker who stole millions from its Ethereum-based non-custodial protocol.
• The hacker would repay $176.4M in response to the request for a 90% money return, keeping the remaining $19.6 million.
• Euler Labs has enlisted the services of law enforcement and blockchain intelligence platforms to identify and apprehend the hacker if they refuse to restore the stolen funds within 24 hours.
Euler Finance Demands Restoration of Stolen Funds
Euler Finance has demanded that a hacker responsible for stealing millions from its Ethereum-based non-custodial lending protocol must restore 90% of the stolen funds within 24 hours or face legal penalties. On March 14, Euler Labs sent an offer to the hacker, with zero ether (ETH) along with a message requesting $176.4M in response to the request for a 90% money return, keeping the remaining $19.6 million.
Threats of Legal Action
If 90% of the funds are not returned within 24 hours, Euler Labs threatened to launch a $1M reward for information that leads to their arrest and return of all funds, enlisting law enforcement in both US and UK as well as blockchain intelligence platforms Chainalysis, TRM Labs and Ethereum community in order to identify and apprehend them. Despite disabling deposits and susceptible donation feature after identifying code on-chain for 8 months before detection, company claims vulnerability was not detected during smart contract examination priorly.
$20 Million Bounty or Legal Action?
Euler Finance is now offering two choices – either pay back 90% of stolen funds or face legal action which could lead up to $1 million bounty put on their head by Euler labs itself if they fail to comply within 24 hours deadline given by them initially after sending ETH 0 offer along with message containing their demand for restitution.
Flash Loan Vulnerability Exploited
The attacker exploited flash loan vulnerability where they borrowed large amount without collateral post gaining access due to flaw in code present on chain since past 8 months when it wasn’t identified during examination process done earlier by Euler finance team itself
Euler finance is doing all it can do enforce their demands but only time will tell how this unfolds as no one knows what will be next move taken by alleged hacker who has been offered two choices – either accept bounty or face legal action leading up bounty being put up against them worth 1 million dollars if they decline former option given by euler labs themselves