Euler Sees Significant Gains After Stolen Funds get Recovered
Euler Labs, the developer of the decentralized finance (DeFi) project Euler, announced on April 4 that the exploiter had successfully returned all of the recoverable funds taken from its protocol on March 13.
According to available information, the Euler exploiter returned $177 million out of roughly $200 million stolen from the DeFi project. The hacker returned $31 million in three transactions on April 3 – the previous transactions started occurring on March 18.
The project’s positive price performance, with the EUL token rallying by around 15% to as high as $4.06 in the last 24 hours, was influenced by the news that it had recovered all the stolen funds.
Following successful negotiations, all of the recoverable funds taken from the Euler protocol on March 13th have now been successfully returned by the exploiter.
— Euler Labs (@eulerfinance) April 3, 2023
On-chain data shows a change of heart
On-chain data showed that the hacker had initially sent 100 ETH to North Korea-linked hackers of the Ronin Bridge and moved 1,000 Ethereum (ETH) into the Tornado Cash mixer, prompting speculations that he might not return the funds.
However, the attacker appeared to have had a change of heart and apologized for his actions in an on-chain message on March 28. The message read:
“Jacob here. I don’t think what I say will help me in any way, but I still want to say it. I messed with others’ money, others’ jobs, others’ lives. I’m sorry. I didn’t mean all that. I really didn’t mean all that. Forgive me.”
End of the $1 million reward campaign
The DeFi protocol said that it would no longer accept new information for its $1 million reward campaign used to incentivize the community to provide information on the exploiter. Euler’s value had retraced to $3.92 at the time of writing.
Good news for Euler and its community
The DeFi community has welcomed the news, with many praising Euler Labs for its response to the hack. Euler has been commended for its transparency, quick response, and efforts in recovering the stolen funds.
Their actions have benefited the project and sent a message to other DeFi projects that quick responses and transparency in the face of hacks can be critical for a project’s survival.
The recent events have demonstrated that DeFi projects and their communities can emerge stronger from crises by implementing the right strategies and having open communication with their communities.