News

Euler Finance: 10 audits not enough to prevent hack

Published

1 year ago

March 17, 2023

Marvelous Akpere

Euler Finance, an Ethereum-based lending protocol, suffered a devastating attack that resulted in over $175M worth of assets being stolen.

This was not only financially catastrophic for the company but also had personal consequences for its CEO: Michael Bentley.

The time immediately after an attack is crucial and I've done everything I can to support the recovery process. I've had to sacrifice time with my newborn son. I'll never forgive the attacker for that, but they can put things right and return funds to the EulerDAO Treasury ASAP.
— Michael Bentley (@euler_mab) March 16, 2023

Despite having undergone 10 audits within two years prior to this incident, it seems as though these measures were unable to prevent such a significant breach from occurring.
This shows the limitation of smart contract audit however helpful it has been and will continue to be. Audits are helpful but they are not enough when an experience and determined hacker wants to take on a firm.
What the industry requires are new ways of protecting protocols, new risk management systems such that it protects funds from being taken out of protocols or causing them to be unstable to legitimate users.

10 audits in 2 years couldn't stop it.@EulerFinance got hit with a $170M+ attack on their #Ethereum-based lending protocol that CEO, @euler_mab says caused him to 'sacrifice time' with his newborn son. He vows to never forgive the hacker.
About the hack: https://t.co/0VTHaUYejK pic.twitter.com/5oZ8JoHDBK
— CryptoTvplus (@Cryptotvplus) March 17, 2023