Euler Finance: Has identified protocol vulnerabilities and disabled related modules, and will continue to work with security partners, law enforcement, and the community

BlockBeats: On March 14th, Euler Finance, the DeFi lending protocol, released a recent progress update that has prevented direct attacks by helping disable the EToken module, While working with TRM Labs, Chainalysis, and the broader Ethereum security community to help investigate and recover funds, the team has also notified and shared information with law enforcement in the United States and the United Kingdom, and has attempted to contact those responsible for the attack. In addition, Euler Finance said the attacker took advantage of vulnerable code that allowed it to create unsecured token debt positions by donating funds to the agreed reserves, allowing the attacker to liquidate the accounts and profit from liquidation bonuses. Euler Labs had previously worked with various security organizations to audit Euler Finance protocols, and while vulnerable code was reviewed and approved during the external audit, the vulnerability was not discovered as part of the audit, and the vulnerability remained on the chain for eight months before being exploited today, Despite a $1 million bug bounty during that time.