Lending protocol Euler Finance faced a flash loan attack and lost $197 million worth of crypto assets.
Today Ethereum-based non-custodial lending protocol Eurler, in the early morning, this platform faced a flash loan attack and that attack helped the exploiter to grab $197 million worth of crypto assets, which includes $136 million of staked ether (stETH), $34 million of USDC, $19 million of wrapped Bitcoin (WBTC) and $8.7 million of DAI.
Euler Finance team also confirmed they came to know about this incident and they are now engaged with the security team & law enforcement to catch the culprits behind this attack.
Earlier this around 2 days ago, the Euler Finance team warned platform users to remain away from fake domain names, pretending to be Euler Finance.
Flash loan attack
Flash loan attack is a loophole of the Defi sector. Under a high token price volatility situation, Defi protocols allow trading of that token with loan funds without any collateral.
In the past couple of years, many Defi protocols saw flash loan attacks. Usually, this attack type remains a very easy method for bad actors to steal money because it doesn’t require KYC verification.
These types of incidents are clear hint that the Defi sector needs more time to evolve, so that it can easily fight against the bugs and prohibit the bad actors’ activities.
As per reports, In 2022, North Korean hackers targeted more than 50% of the Defi protocols over centralized platforms to steal crypto assets.