Euler Finance’s EUL token price dropped by 26.2% due to the attack on its lending system. BlockSec, a business that verifies smart contracts, notified the crypto community of the hack. The firm lost $177 million in four transactions one year after a fundraising round that included prominent names like Coinbase, Jump, and the now-defunct cryptocurrency exchange FTX.
Smart contract audit reveals $177M loss
BlockSec, a company that does audits of smart contracts, is the one who informed the participants of the assault on the crypto market. The company at first thought that $8 million had been stolen, but subsequent investigation found that $177 million had been stolen via four separate transactions.
In addition, Euler Finance rose to prominence in 2022 when it successfully raised capital from well-known companies in the market, including Coinbase, the exchange FTX (which has since gone out of business), Jump, Jane Street, and Uniswap.
Meanwhile, in September 2022, IntoTheBlock announced they were developing a risk-monitoring dashboard for Euler Finance. Effective risk management and timely identification of potential threats are required to guarantee that the DeFi ecosystem can continue functioning without interruption.
Token plunge after the attack
It just took a few short hours for the ERC-20 token’s value to plummet by 26.2%, going from $6.14 to $4.44 when the news of the assault on the lending protocol became public. Cryptocurrency industry professional ZachXBT, who identifies the breach as a “blackhat” operation, forecasts a low likelihood of successfully retrieving the stolen assets.
The knowledgeable person has established a connection between the attacker’s address and an earlier breach of a protocol on the Binance Smart Chain. After that breach, the attacker placed cash into the Tornado mixer. The team working on Euler Finance is now facing a challenge, but they have reassured their customers that an inquiry is being conducted.