Euler Finance Community Weighs Plan to Return Money Recovered From $200M Hack

The goal of the proposal is to let Euler users redeem their funds as soon as possible.

AccessTimeIconApr 10, 2023 at 4:09 p.m. UTC
Updated May 9, 2023 at 4:12 a.m. UTC
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The community behind Euler Finance, the decentralized finance (DeFi) lending protocol that suffered a $200 million hack in March, will soon be asked to vote on how to distribute recovered funds to users.

Created five days ago, the proposal aims to let Euler users redeem their capital as soon as possible. Submitted by co-founder Doug Hoyte, this has been “chosen as the optimum approach” by the Euler Foundation, Euler Labs and external advisers, according to the proposal.

As shocking as the hack was, the aftermath might top it. Euler Finance said last week that it had gotten back all “recoverable funds” stolen in the hack. The attacker apologized. According to the proposal in Euler’s governance forum, recovered funds total more than 95,556 ether (ETH) and 43 million of the DAI stablecoin. Unrecovered funds include the 1,100 ETH sent to Tornado Cash and 100 ETH sent to an address associated with Lazarus Group, a hacker group allegedly tied to North Korea.

If the plan gets approved, Euler will calculate the value of users’ assets and liabilities using prices at the block time the protocol was disabled following the hack.

A Euler Labs spokesperson declined CoinDesk’s request to comment.

Edited by Nick Baker.


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Sage D. Young

Sage D. Young was a tech protocol reporter at CoinDesk. He owns a few NFTs, gold and silver, as well as BTC, ETH, LINK, AAVE, ARB, PEOPLE, DOGE, OS, and HTR.

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