Euler Finance Hacker Defies $1M Bounty, Moves $196M Stolen Funds to Tornado Cash as Victims Plead for Help

The crypto world is ablaze with the latest twist in the Euler Finance saga! Just when you thought things couldn’t get more dramatic, the hacker behind the staggering $196 million exploit has thumbed their nose at a hefty $1 million bounty and begun funneling the stolen assets through Tornado Cash, a notorious crypto mixer.

Hacker ‘On the Run’ – But Are They Really Hiding?

Blockchain analytics firm PeckShield tweeted that the attacker, responsible for the devastating flash loan attack on the Ethereum-based noncustodial lending protocol, seems to be making a getaway. In a brazen move, they transferred 1,000 ETH – roughly $1.65 million – through Tornado Cash. This action comes hot on the heels of Euler Labs’ desperate attempt to recover the funds by offering a million-dollar reward for information leading to the hacker’s capture and the return of all assets.

Euler Labs had even sent an on-chain message directly to the hacker, issuing a 24-hour ultimatum: return 90% of the loot, or face a bounty hunt leading to “incarceration and the return of all monies.” It seems the hacker has chosen the latter, signaling a clear disregard for the amnesty offer and escalating this high-stakes crypto heist.

Tornado Cash: A Hacker’s Best Friend?

The use of Tornado Cash raises serious questions. Why choose a crypto mixer now, especially with a bounty on their head? It suggests the hacker is prioritizing anonymity and obfuscation, making it significantly harder for authorities and blockchain analysts to trace the stolen funds.

But what exactly is Tornado Cash?

• Crypto Mixer: Tornado Cash is a decentralized, non-custodial privacy tool built on Ethereum.
• Anonymity Focus: It allows users to deposit and withdraw cryptocurrency, effectively breaking the on-chain link between the sender and receiver. This makes transaction tracing extremely challenging.
• Controversy: While used for legitimate privacy purposes, mixers like Tornado Cash are often associated with illicit activities, including money laundering and, in this case, hiding stolen crypto assets.

Victims’ Heartbreaking Pleas: ‘Life Savings’ Vanish in Euler Exploit

Amidst the technical maneuvers and bounty hunts, the human cost of this hack is becoming painfully clear. PeckShield’s analysis also revealed a glimmer of hope, albeit a bittersweet one. Around 100 ETH ($165,202) was sent to a wallet address believed to belong to one of the victims. This address had previously sent an on-chain message pleading with the attacker to return their “life savings.”

This act of desperation opened the floodgates. Numerous other alleged victims have now bombarded the address with messages, each a heart-wrenching story of financial devastation. One message, particularly poignant, speaks for twenty-six families from rural areas, stating:

“We are twenty-six families from jobless rural areas, who lost a million USDT in total, with our portion of monies in the protocol being the life-savings from our previous decades of employment in factories.”

Another victim shared a deeply personal message, revealing the potential real-world consequences of this digital theft:

“If we can’t finance our house, my wife is going to murder me […] Is there any way you could assist me? I don’t know what to tell my wife,” they wrote, highlighting the devastating impact on their dream of owning property.

What Was Stolen? A Breakdown of the $196M Haul

On-chain data paints a clear picture of the diverse range of assets pilfered in the Euler Finance attack. The $196 million wasn’t just in one cryptocurrency; it was a mix of stablecoins and other valuable crypto assets:

This diverse portfolio underscores the wide-reaching impact of the exploit, affecting users holding various types of crypto assets within the Euler Finance protocol.

Will the Hacker Return the Funds? The Odds Seem Slim

With the hacker now utilizing Tornado Cash, the chances of recovering the stolen $196 million appear to be dwindling. The move to a crypto mixer suggests a calculated effort to disappear with the funds, despite the bounty and the desperate pleas of the victims. The Euler Finance hack serves as a stark reminder of the risks inherent in the DeFi space and the devastating real-world consequences of smart contract vulnerabilities. As blockchain analytics firms continue to track the flow of funds, the crypto community watches with bated breath, wondering if there will be any resolution or if this massive heist will remain another cautionary tale in the ever-evolving world of decentralized finance.