DeFi protocol Euler Finance is working with legislation enforcement and security companies to get successfully $197 million that used to be stolen from its platform.

On March 13, Euler confirmed that it had suffered an exploit after quite a lot of blockchain security companies notified users of the attack. The non-custodial lending platform built on Ethereum raised $32 million in funding final year, with participation from Uniswap, Coinbase and FTX.

In line with evaluation from SlowMist, the attacker outdated flash loans to deposit funds on Euler after which leveraged them to identify off the liquidation common sense. To create this approach, he donated funds to a reserve deal with, which were no longer discipline to a liquidity check. The excessive leverage triggered a tender liquidation, which enabled him to carry out the collateral funds without transferring the total liabilities.

The Euler attacker stole $116 million in wrapped staked ETH, $34.2 million in USDC, $18.6 million in wrapped BTC, $12.6 million in wrapped ETH, $8.9 million in DAI and $6 million in staked ETH, essential Igor Igamberdiev, head of research at Wintermute.

The exploit affected some assorted DeFi protocols that interacted with Euler, alongside side liquidity protocol Balancer.

Balancer briefly disabled the UI that enables liquidity suppliers to exit their positions from the Euler Boosted USD pool. Whereas this functionality has now been restored, users received’t be in a location to withdraw from this pool except Euler restores transferability of collateral tokens or “eTokens.”

Assorted DeFi protocols, admire Attitude and Idle Finance, were additionally impacted by the Euler hack. Attitude has $17.6 million USDC trapped in Euler thru a generic optimized lender approach contract, and DeFi yield aggregator Idle Finance has $4.6 million USDC caught in the protocol.