Hackers succeeded in stealing 26 billion yen worth of virtual currency with 'flash loan attack' aimed at DeFi



Euler Finance, a platform that handles decentralized finance (DeFi), was hit by a flash loan attack, and it turned out that digital assets worth $ 197 million (about 26.3 billion yen) leaked out.

Hackers steal $197 million in crypto in Euler Finance attack
https://www.bleepingcomputer.com/news/security/hackers-steal-197-million-in-crypto-in-euler-finance-attack/



A flash loan is

a mechanism in which the borrower receives an unsecured loan from the lender in one transaction and can spend the money as they please. Borrowers typically use their funds for arbitrage , buying a cryptocurrency on an exchange with a lower price and selling it on an exchange with a higher price in an attempt to make a profit. Since the entire flow from loan to repayment, including these transactions, is executed simultaneously in the same transaction, the time from borrowing to repayment is typically a few seconds.

A flash loan attack is an act of exploiting such a mechanism and illegally manipulating prices to gain a large amount of profit.



On March 12, 2023, Euler Finance lost $197 million worth of digital assets in a flash loan attack, causing the price of the company's token, Euler, to drop nearly 50% overnight.



The leaked digital assets included multiple tokens including DAI , WBTC , USDC and stETH . However, since $ 135.8 million (about 18.2 billion yen) of stETH, which accounts for the majority of the outflow, is being tracked, it is considered difficult for the criminal to convert the funds into a usable form. I'm here.

Blockchain security and analytics firm PeckShield has reported a flaw in the logic of Euler's clearing system. According to PeckShield, the system did not verify that the culprit was handling amounts in excess of the collateral and that the conversion rate between collateral and loan funds was correct. It is said that it succeeded in obtaining the profit of

Euler Labs, the startup that runs Euler Finance, said it will work with security experts and law enforcement to release more information when it is ready.




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