Euler Finance, an Ethereum-based lending protocol, was recently hacked for $196 million. Before this attack, the platform underwent ten consecutive audits over two years, and it was concluded that it had only a low risk of being attacked and no open problems.
WazzCrypto, a Twitter user and victim of the attack, reflected on why he invested in Euler Finance. He said he typically performs a thorough safety check on protocols, including checking audits, comparing audit dates to current versions, and looking for decent bug bounties.
reflecting on the money I lost on @eulerfinance :
I usually do a pretty thorough safety check of protocols, check audits, see audit findings/corrections as well as compare audit dates to current version, check if it has a decent bug bounty, and what kind of backing it has etc…
— Wazz (@WazzCrypto) March 15, 2023
He found out that Euler had undergone ten audits by six different firms over the past two years, including a smart contract audit, UI audit, and frontend audit, which he had never seen before in a DeFi protocol. The firms that conducted the audits were Sherlock, Omniscia, Certora, Halborn, PenTestPartners, Solidified, and ZK Labs. He concluded that the platform’s security looked solid.
Euler in particular had 10audits from 6 diff firms, including a frontend audit which I’ve never seen in a defi protocol. It looked super solid.
And most of these auditors already run automated scans through the code to find some of the most common stuff. pic.twitter.com/vNb931dval
— Wazz (@WazzCrypto) March 15, 2023
Responding to the security issue raised by WazzCrypto, Michael Bentley, the CEO of Euler Laboratories, stated that Euler has always been a security-minded project. The Euler smart contracts, including the vulnerable lines of code, were audited, and he assured users of the team’s commitment to resolving any issues.
Bentley acknowledged that people are anxious about what will happen next, and said everyone connected to Euler is working nonstop to get the best results as soon as possible. He also thanked the security experts working to find leads for the investigation.
Bentley retweeted WazzCrypto’s tweets and expressed his feelings about the attack. He admitted that the past few days had been the hardest of his life. He noted that he had done everything to support the recovery process and would never forgive the attacker for making him sacrifice time with his newborn son. He advised the hacker to return the funds to the EulerDAO Treasury as soon as possible.
A few words about recent events.
These have been the hardest days of my life and I’m absolutely devastated for everyone who’s been affected.
— Michael Bentley (@euler_mab) March 16, 2023
Meanwhile, the hacker behind the Euler Protocol attack had reportedly moved some of the funds into a cryptocurrency mixer, Tornado Cash, despite threats of arrest and an asylum offer of 10% of the amount stolen from the protocol.
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