Euler Finance Gives Hackers Ultimatum to Return Funds

Following the exploit on its platform, Ethereum-based lending protocol Euler Finance is now attempting to retrieve the stolen assets. The platform is negotiating with the hackers to regain custody of the stolen assets

According to a message from the lender, the attackers have 24 hours to return 90% of the funds or it will launch a $1 million bounty reward for information that would lead to the arrest of the attackers and consequently the return of all stolen funds. However, several users have shared their thoughts on Euler’s $1 million bounty reward. 

Some users believe the bounty isn’t enough incentive and the hacker could easily outbid the protocol in a bidding war and keep the loot for themselves. If the hackers agree to the deal, that would mean they get to keep about $19.6 million for themselves and return $176.4 million to the platform.

Meanwhile, Euler Finance mentioned earlier that it sought the help of law enforcement agencies in both the United States and the United Kingdom to track down the hackers. It is also working with the Ethereum community and blockchain intelligence firms Chainalysis and TRM Labs to recover the funds.

Before choosing to pursue the legal route and involving law enforcement, the lender reached out to the hackers hours after the exploit in hopes to broker a deal and open up a communication channel but it’s yet to get a response from the attackers.

Euler’s $200M Exploit Affects DeFi Platforms

The exploit on Euler Finance forced a number of negative chain reactions for a number of Decentralized Finance (DeFi) protocols. For instance Balancer in the wake of the exploit reportedly paused its pool and set it to recovery mode in its bid to protect the remaining funds. This action by the protocol made it impossible for users to transfer funds.

Additionally other platforms including Idle Finance, Yearn Finance, and Angle with the latter reporting a loss of about $17 million in assets to the exploit. Expectedly Euler’s native token EUL continued on a decline on account of the news. It now trades for $2.46 according to data from CoinMarketCap.

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