- Euler Finance has announced a total possible recovery of all the stolen funds.
- The recovery ends the $1 million bounty that Euler Labs had issued.
- The total recovery comes after Euler Finance convinced the hacker to return the money.
Euler Finance has today announced that the total refundable funds have been returned twenty-three days after the protocol was hacked.
Euler convinced the hacker to return most of the funds in a back-and-forth that resulted in the return of the total refundable funds. The hacker stole $196 million worth of cryptocurrency assets including 8,877,507.35 DAI, 34,413,863.42 USD Coin, 85,818.26 staked Ether (StETH), and 849.14 wrapped Bitcoin (WBTC).
After the hack, the total value locked (TVL) in Euler Finance smart contracts dropped to $10.37 million from above $311 million.
Euler’s effort to recover the funds
The next day after the hack, Euler Labs took serious steps to recover the funds and disabled its vulnerable etoken module and donation function. It also partnered with auditing firms in analyzing the root cause of the hack.
On March 14, Euler sent an on-chain message to the hacker saying:
“Following up on our message from yesterday. If 90% of the funds are not returned within 24 hours, tomorrow we will launch a $1M reward for information that leads to your arrest and the return of all funds.”
While the hacker did not comply with the 24-hour ultimatum, the hacker started moving funds at will, mixed some of the funds on Tornado Cash and sent an alleged victim some funds.
Euler Labs on March 21 launched a $1 million bounty reward for any information about the hacker after the hacker ghosted the protocol mid-conversation as the protocol was trying to strike a deal.
The hacker then started returning the funds on March 25
The final transaction was made on March 4 where the hacker sent 12 million DAI, and 10,580 ETH in several transactions.
Following the total refund of the funds, Euler Finance stated:
“Because the exploiter did the right thing and returned the funds, and the $1 million reward campaign launched by the Euler Foundation will no longer be accepting new information.”
The price of EUL, the native token of Euler Finance, has surged by more than 13% following the news and was trading at $3.9143 at press time.