On-chain data first spotted by Lookonchain shows that an address controlled by the entity that exploited Euler Finance’s protocol earlier this week has sent 100 ether (ETH), worth $170,515 at current prices, to a wallet associated with Lazarus Group’s Ronin network hack.
It’s unclear if Lazarus Group is also behind the attack, or if there’s any sort of affiliation with the organization and the entity that exploited Euler Finance.
The U.S. Department of the Treasury added Lazarus Group, to its list of designated entities last April. In January, the Federal Bureau of Investigation said that Lazarus Group, along with fellow North Korean hacking squad APT38, was responsible for the theft of $100 million in crypto assets from Horizon Bridge. Lazarus Group is a cybercrime organization run by the North Korean government.
The attacker behind the exploit didn’t necessarily “hack” it, or break its code to intrude inside, but rather manipulated internal markets via a flash loan to drain its treasury.
Last October, a similar scheme was used to manipulate the Solana-based protocol Mango Markets to drain its treasury. The individual behind the exploit, Avraham Eisenberg, was arrested in Puerto Rico in late December.
The price of Euler’s token, EUL, was recently trading at $1.85, according to CoinGecko. It’s down nearly 74% over the past week.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.