- Attacker apologized in messages encoded on the blockchain
- He intends to return the full amount soon
In an inexplicable twist of fate, Euler Finance received $120 million of the $200 million it lost in an exploit earlier this month, CoinDesk reported. The attacker behind the exploit returned more funds to Euler and apologized in a series of messages encoded in a blockchain transaction.
The attacker identifies as Jacob and says he made a mistake and “messed with others’ money, others’ jobs, others’ lives.”
7K ETH and $10M in DAI returned in past 12h
In the past 12 hours, the hacker has sent DAI stablecoins worth $10 million and 7,000 ether to the protocol according to blockchain data. Last weekend, he sent Euler more than 51,000 ether. In total, he has returned more than $120 million to the protocol.
Euler had threatened legal action and offered a $1 million reward for the attacker to return the stolen money. Jacob assured Euler he intends to return the whole amount. He wrote in another encoded message:
Chances of returning funds looked slim 10 days ago
Previously, he wasn’t expected to return the rest of the money. On March 18, Bankless Times reported that he had sent around 3,000 ether ($5.4 million) to Euler Finance’s deployer address from his own.
PeckShield informed that he had sent the funds in three transactions of 1,000 ether each. At the time, it looked like the chances of the hacker returning the whole amount were slim to none.
Jacob tricked Euler into thinking the protocol held very little of its collateral token and more of its debt token. Euler issues debt tokens to trigger on-chain liquidation when the platform has more debt than collateral tokens.
He took out a loan of more than $30 million in Dai using flash loans from Aave and Balancer. He sent Euler $20 million of that. Then, he borrowed 10 times what he had deposited.
