Euler Finance, a DeFi platform that was hacked for $197 million earlier this week, is attempting to negotiate with its anonymous exploiter.
DeFi Llama founder 0xngmi shared a series of messages sent by the Euler team to the hacker over the last 48 hours. The messages were embedded in a blockchain transaction of 0 ETH sent to the exploiter’s Ethereum wallet address.
new message from euler team to exploiter pic.twitter.com/HDVtPNIqr1
— 0xngmi (llamazip arc) (@0xngmi) March 15, 2023
In the first message, the Euler team enquired whether the hacker would be open to discussing potential next steps. In the second message, Euler demanded that the hacker return 90% of the stolen funds or face the consequences of law enforcement.
If the hacker does not comply, the Euler team said it planned to offer a $1 million reward to users who could provide information about the hacker that leads to his arrest. On Wednesday, Euler made good on this promise, even linking a wallet address where the reward of $1 million USDC is stored.
If you have any information you believe will be helpful, please send it to the Euler Foundation at [email protected].
You can see the reward ready, at this address:https://t.co/al3xZg77yg
— Euler Labs (@eulerfinance) March 15, 2023
Some members of the crypto community were skeptical of how Euler’s ultimatum would play out.
“Dude literally just stole $200 million I can’t believe they think threat of a $1M bounty is going to be the turning point,” tweeted one user.
Others opined that keeping 10% of the stolen funds, which amounts to a considerable sum of close to $20 million, should be a “no brainer” for the hacker, considering he avoids the threat of prosecution.
The hacker stole $197 million worth of staked ETH, DAI, USDC and other wrapped tokens. The exploit also impacted at least 10 other DeFi protocols, including Balancer and Yearn Finance.
The Euler hack has affected our mainnet liquidity pools. Yield liquidity pools hold two assets: Euler eTokens and Yield fyTokens. We do not yet have accurate figures for the value of the eTokens held before the attack but believe the total value to be less than $1.5 million USD.
— Yield Protocol (@yield) March 13, 2023