Euler Finance, a lending protocol in the decentralized finance (DeFi) space, which has witnessed several losses of funds through network exploits, has fallen victim to the largest exploit so far in 2023.

Recently, the space Meta Sleuth, a crypto analytics company, recently reported the attacks on Euler Finance. The firm noted that the lending platform lost tokens worth over $190 million, which include 43.6M DAI and 96,800 ETH tokens.

Further, the DeFi lending platform attack affected some DeFi protocols, including Balancer. The exploit led to the loss of more than 65% of the Balancer’s TVL before its reaction in pausing the pool.

Euler Finance Blocks Vulnerable Module

According to a post on Euler Labs’ official Twitter page, the protocol has taken some critical actions to fix the issue. It stopped the direct attack on the platform by disabling the vulnerable etoken module. Hence, it blocked deposits as well as the vulnerable donation function.

The protocol has also provided a link to an analysis of how the hackers could exploit the network, thereby stealing users’ funds. Euler Finance reported that the software vulnerability had been on-chain for eight months until hackers’ exploitation.

Moves To Recover Stolen Funds

The Euler Finance team is reportedly working with security firms and authorities to remedy the situation. These include Chainalysis, TRM Labs, and the broader ETH security community. Also, the protocol notified the US and UK law enforcement agencies to assist it in tracking and stopping the cyber thieves.