Verify a decision

{"actor":"system:backfill","investigation_id":"04f904e4-8932-42bf-92cb-e7a23d2f99b2","kind":"publish","page_slug":"euler-finance","published_at":"2026-05-30T18:25:14.034Z","sequence_num":1,"snapshot":{"content_type":"investigation","entity_name":"Euler Finance","sections":[{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://www.euler.finance/","type":"other","url":""},{"credibility":3,"name":"https://www.theblock.co/linked/150447/haun-ventures-leads-32-million-round-in-ethereum-protocol-euler","type":"other","url":""},{"credibility":3,"name":"https://oakresearch.io/en/reports/protocols/euler-v2-eul-comprehensive-overview-modular-lending-ecosystem","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://www.chainalysis.com/blog/euler-finance-flash-loan-attack/","type":"other","url":""},{"credibility":3,"name":"https://www.bloomberg.com/news/articles/2023-03-13/defi-s-euler-finance-hit-by-197-million-hack-experts-say","type":"other","url":""},{"credibility":3,"name":"https://therecord.media/cryptocurrency-heist-de-fi-euler","type":"other","url":""},{"credibility":3,"name":"https://www.coinbase.com/blog/euler-compromise-investigation-part-1-the-exploit","type":"other","url":""},{"credibility":3,"name":"https://blocksec.com/blog/euler-finance-incident-the-largest-hack-of-2023","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://cryptonews.net/news/security/20684043/","type":"other","url":""},{"credibility":3,"name":"https://www.theblock.co/post/249413/euler-finance-whitehat-unknowingly-caused-200-million-hack","type":"other","url":""},{"credibility":3,"name":"https://hacken.io/discover/euler-finance-hack/","type":"other","url":""},{"credibility":3,"name":"https://www.cyfrin.io/blog/how-did-the-euler-finance-hack-happen-hack-analysis","type":"other","url":""},{"credibility":3,"name":"https://euler.finance/blog/securing-euler","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://www.euler.finance/blog/war-peace-behind-the-scenes-of-eulers-240m-exploit-recovery","type":"other","url":""},{"credibility":3,"name":"https://fortune.com/crypto/2023/04/06/how-an-elite-team-pressured-a-hacker-to-return-200m-he-stole-from-defi-platorm-euler/","type":"other","url":""},{"credibility":3,"name":"https://www.coindesk.com/tech/2023/03/28/hacker-behind-200m-euler-attack-apologizes-returns-millions-in-ether-dai-to-protocol","type":"other","url":""},{"credibility":3,"name":"https://www.coindesk.com/business/2023/04/12/euler-finance-lets-users-redeem-recovered-funds-following-200m-theft","type":"other","url":""},{"credibility":3,"name":"https://decrypt.co/125373/euler-finance-exploiter-returns-recoverable-funds-200m-hack","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://www.chainalysis.com/blog/euler-finance-flash-loan-attack/","type":"other","url":""},{"credibility":3,"name":"https://www.coindesk.com/business/2023/03/21/hacker-vs-hacker-north-koreans-attempt-to-phish-euler-exploiter-of-200m-in-crypto-experts-say","type":"other","url":""},{"credibility":3,"name":"https://cryptopotato.com/interaction-detected-between-wallet-tied-to-euler-finance-exploiter-and-north-koreas-lazarus-group/","type":"other","url":""},{"credibility":3,"name":"https://www.euler.finance/blog/war-peace-behind-the-scenes-of-eulers-240m-exploit-recovery","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://blockworks.co/news/euler-labs-risk-head-resigns/","type":"other","url":""},{"credibility":3,"name":"https://cryptoslate.com/eulers-head-of-risk-resigns-saying-not-much-i-can-help-them-with/","type":"other","url":""},{"credibility":3,"name":"https://thedefiant.io/news/people/euler-ceo-michael-bentley-steps-down","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://www.theblock.co/post/314655/euler-launches-v2-modular-defi-lending-protocol-following-hack","type":"other","url":""},{"credibility":3,"name":"https://www.euler.finance/blog/euler-v2-the-new-modular-age-of-defi","type":"other","url":""},{"credibility":3,"name":"https://www.coindesk.com/business/2025/03/14/euler-looks-to-build-on-v2-s-defi-lending-comeback-story","type":"other","url":""},{"credibility":3,"name":"https://blockworks.com/news/euler-finance-exploit-comeback","type":"other","url":""},{"credibility":3,"name":"https://defillama.com/protocol/euler-v2","type":"other","url":""}]},{"content":"","heading":"","severity":"medium","sources":[{"credibility":3,"name":"https://coinmarketcap.com/currencies/euler-finance/","type":"other","url":""},{"credibility":3,"name":"https://defillama.com/protocol/euler-v2","type":"other","url":""},{"credibility":3,"name":"https://www.coindesk.com/markets/2026/04/20/defi-tvl-drops-more-than-usd13-billion-in-two-days-following-kelp-dao-hack","type":"other","url":""},{"credibility":3,"name":"https://www.euler.finance/risk-disclosures","type":"other","url":""}]}],"sources_used":[],"summary":"Euler Finance is an Ethereum-based non-custodial lending protocol founded in 2020 by Michael Bentley (PhD, Oxford) that pioneered permissionless lending for long-tail ERC-20 assets. On March 13, 2023, the protocol suffered a ~$197 million flash loan exploit — the largest DeFi hack of 2023 — caused by a missing health check in the donateToReserves() function. In an unusual outcome, the attacker, who communicated under the alias 'Jacob,' returned approximately $240 million in assets (including ETH price appreciation) over three weeks following on-chain negotiations, enabling full user restitution. The protocol relaunched as Euler V2 in September 2024 with a modular architecture, 45+ security audits, and subsequently grew TVL to over $1.5 billion by early 2025.","timeline":[{"date":"2020-09-01","event":"Euler Labs incorporated; development of permissionless DeFi lending protocol begins.","source":""},{"date":"2021-08-25","event":"Euler raises ~$8 million in Series A funding, with Paradigm as a lead investor.","source":""},{"date":"2021-05-01","event":"First audit engagements begin; Halborn, Solidified, and other firms begin reviewing Euler smart contracts.","source":""},{"date":"2022-06-07","event":"Euler raises $32 million Series B led by Haun Ventures; investors include FTX Ventures, Coinbase Ventures, Jump Crypto, and Jane Street.","source":""},{"date":"2022-07-01","event":"Whitehat researcher Kankodu reports 'first depositor' bug via Immunefi bug bounty; awarded $50,000. Euler deploys fix introducing donateToReserves() function.","source":""},{"date":"2022-09-01","event":"WatchPug audit of donateToReserves() function conducted; missing solvency check not identified. Vulnerable code deployed on mainnet.","source":""},{"date":"2023-03-13","event":"Flash loan exploit drains ~$197 million from Euler Finance across stETH, USDC, WBTC, and DAI. Euler pauses vulnerable module same day. Lazarus Group wallet interaction flagged by on-chain analysts.","source":""},{"date":"2023-03-14","event":"Euler offers $1 million bounty for information on attacker identity. On-chain ultimatum demands return of 90% of funds within 24 hours.","source":""},{"date":"2023-03-18","event":"Attacker returns first tranche: 3,000 ETH (~$5.3 million). On-chain negotiations continue.","source":""},{"date":"2023-03-21","event":"Lazarus Group operatives allegedly attempt phishing attack against the Euler exploiter's wallet; investigators treat this as a false flag, not evidence of affiliation.","source":""},{"date":"2023-03-25","event":"Attacker returns 51,000 ETH (~$90 million) in major tranche.","source":""},{"date":"2023-03-28","event":"Attacker returns additional 7,000 ETH and $10 million DAI. On-chain apology sent by exploiter using alias 'Jacob.'","source":""},{"date":"2023-04-03","event":"Final tranche of stolen funds returned. Total recovered: ~$240 million (exceeding original $197 million due to ETH price appreciation).","source":""},{"date":"2023-04-12","event":"Euler opens user redemptions, allowing affected depositors to claim recovered funds. No net user losses recorded.","source":""},{"date":"2023-04-19","event":"Seraphim Czecker, Head of Risk at Euler Labs, publicly resigns approximately one month after the hack.","source":""},{"date":"2024-02-01","event":"Euler V2 architecture publicly announced; development and security audit program underway.","source":""},{"date":"2024-09-01","event":"Euler V2 launches on Ethereum mainnet following 45 audit engagements across 13 firms, a $1.25M Cantina code competition, and a $3.5M CTF challenge. TVL begins rapid growth from ~$4.5 million.","source":""},{"date":"2025-03-01","event":"Euler V2 TVL surpasses $1 billion, exceeding the V1 historical peak of $323 million. EUL token rises ~70% in Q1 2025.","source":""},{"date":"2026-01-12","event":"Co-founder and CEO Michael Bentley announces step-down from CEO role; Jonathan Han named incoming CEO.","source":""},{"date":"2026-04-19","event":"KelpDAO bridge exploit ($292 million). Euler proactively freezes rsETH-collateralized lending markets to limit protocol exposure.","source":""}]},"v":1}