TechFlow News — Euler Labs has released an update on efforts to recover lost funds for Euler Finance users:
1. Assisted in disabling the EToken module to quickly halt the direct attack, which blocked deposits and the vulnerable donation feature.
2. Collaborated with TRM Labs, Chainalysis, and the broader Ethereum security community to assist in the investigation and fund recovery.
3. Notified and shared information with law enforcement in the U.S. and U.K. We have also reached out to the individual responsible for the attack in hopes of gathering further details.
The attack occurred because the attacker exploited vulnerable code that allowed them to create uncollateralized token debt.
The proposed solution is for users affected by this vulnerability to request refunds. Remaining treasury funds will be used for these reimbursements. In this incident, the smart contract audit platform Sherlock helped Euler submit a claim, where a $4.5 million claim was voted on (and ultimately approved), and today a payment of $3.3 million was executed.
