Euler Finance, an Ethereum-based lending protocol that recently fell victim to a $196 million flash loan attack, may be on its way to recovering the stolen funds as the exploiter has expressed interest in reaching an agreement. In an on-chain message to Euler, the exploiter stated, “We want to make this easy on all those affected. No intention of keeping what is not ours. Setting up secure communication. Let us come to an agreement.” Euler promptly replied, asking the exploiter to talk “in private” to discuss further.
This comes after Euler had previously attempted to negotiate a deal with the exploiter, which was unsuccessful. In response, Euler launched a $1 bounty reward for any information that could lead to the exploiter’s arrest and the return of the funds. However, with the exploiter now showing interest in an agreement, there may be a positive outcome for the platform and its users.
While the identity of the exploiter remains unknown, blockchain analytics firm Chainalysis has suggested that the recent transfer of 100 ETH to a North Korean wallet address may suggest the involvement of the Democratic People’s Republic of Korea (DPRK). However, this could also be an attempt to misdirect investigators.
Other transactions from the exploiter’s wallet address include the return of 3000 ETH to Euler Finance, funds sent to crypto mixer Tornado Cash, and even an apparent victim of the exploit. Another address has also reached out to Euler, claiming to have found a “solid string of connections” that could help identify the exploiter’s location.
The recent communication from the exploiter, along with the offer to reach an agreement, is a significant development for Euler Finance. It demonstrates that the exploiter may be willing to return the stolen funds, which would be a major relief for the platform and its users. However, the negotiations are still in their early stages, and it remains to be seen whether an agreement can be reached.
Moreover, the involvement of a North Korean wallet address has raised concerns about the potential involvement of a state actor in the attack. If this is the case, it could have significant implications for the cybersecurity landscape, as it would suggest that nation-states are increasingly turning to cryptocurrency-related crimes. The potential involvement of state actors in cyberattacks highlights the need for increased cooperation between governments and the private sector to combat these threats.
Despite the challenges ahead, the fact that the exploiter has reached out to Euler Finance is a positive step, and it provides hope that the stolen funds can be recovered. Euler Finance has shown a willingness to negotiate, and it remains to be seen whether the exploiter will do the same. The next few days and weeks will be crucial in determining whether a resolution can be reached and whether the platform can recover from the attack.