Decentralized finance (DeFi) lending protocol Euler Finance is preparing to offer a $1 million reward for information on the exploiter who stole almost $200 million from the platform on Monday.
Euler Labs sent an on-chain message to the attacker on 14 March, warning him that he had 24 hours to return 90% of the stolen funds before the DeFi platform places a $1 million bounty on information that could lead to his arrest. The ultimatum came only a day after the lending protocol tried to get in touch with the flash-loan exploiter in an attempt to recover a portion of the stolen funds, though that move seems to have failed. Euler’s attached message reads:
“Following up on our message from yesterday. If 90% of the funds are not returned within 24 hours, tomorrow we will launch a $1M reward for information that leads to your arrest and the return of all funds.”
In an update to its community, the platform noted that it was already working with law enforcement agencies in the United Kingdom and United States. Euler has also engaged with blockchain analysis firms Chainalysis, TRM Labs, and the wider Ethereum community to help with its investigation and effort to recover the missing funds.
The lending protocol lost almost $200 million in DAI, wrapped Bitcoin (WBTC), staked ether (sETH), and USDC on 13 March after the exploiter used a flash loan to temporarily trick Euler’s protocol into assuming it held varying amounts of eToken and dToken. The team behind the project explained that the smart contract vulnerability “was not discovered” by its auditing partners, and existed on-chain for eight months before it was exploited. The platform tweeted: