The crypto industry has been facing many hackers, being one of the blows to this crypto industry. In the most recent attack on the sector, hackers reportedly stole $197 million in cryptocurrency from the decentralized finance platform known as Euler Finance.
This fraud attack was acknowledged Monday morning, but Euler Finance did not answer the comments. According to the statement issued afternoon by Euler Finance, US law enforcement has been informed about the criminal act to reduce pressure of their crypto investors.
‘We are working closely with the law enforcement team to investigate the fraudulent cash withdrawal this morning.’ The company stated that they must disclose all the information to the police. To recover the funds and figure out exactly what happened, they also added that they are working closely with independent third-party auditors and security companies to recover the money as quickly as possible.
‘Recovering the stole money from Euler is our top priority, and we will do anything to our effort to make it happen.’ Euler is not the only platform hacked; these flash loan attacks have been used to attack several crypto platforms for the past three years.
How Fraudsters Attacks
These flash loan attacks have been used to attack several crypto platforms for the past two years. The attackers or the hackers involve themselves by borrowing considerable money without requiring collateral, and they use this money to buy sizable cryptocurrency from the crypto firms.
These hackers inflate the price artificially and then sell all the crypto coins they got before repaying the loan, and the borrower keeps any profits they got. According to blockchain security firm Certik, research was done, and it was found that the hackers utilized six flash loan attacks to take the money.
The law enforcement team discovered two flaws in the Euler finance platform that made it easy for hackers to bankrupt the system. They were vulnerable to this assault. The $ 197 million hack, according to the information released by Certik, is more than double the sum lost in related incidence to the cryptocurrency platforms put together so far this year. This hack was a blow to the crypto industry.
In a flash loan assault in October, Mango Markets, a cryptocurrency trading platform, lost over $100 million in cryptocurrency through fraud. The US enforcement team under the FBI warned about the use of flash loans by attackers in numerous events affecting the crypto industry worldwide.
A total of $ 136.7 million in staked Ethereum, $ 34,2 million USDC, $ 18.5 million wrapped Bitcoin, and $ 9 million stablecoin, according to the investigation, were taken. The hacker is thought to be holding these assets in several different addresses, as pointed out by Certik.
The US enforcement is taking serious action on this case after there have been a lot of similar issues; this is to avoid future related cases of crypto fraud.