Curve hacker began to return stolen funds
Date: 2023-08-06 Author: Karina Ziganova Categories: CRYPTO PAYMENTS
Market participants still fear for the fate of other DeFi protocols as the founder of Curve used the CRV token as collateral for some loans.
The attacker who attacked the Curve Finance decentralized protocol began to return the stolen funds. The hacker sent 4821 Ethereum (ETH) in a series of transactions to Alchemix Finance, and then transferred another 5494.4 WETH to JPEG’s DAO multisig wallet.
Previously, the hacker sent an on-chain message to Alchemix asking him to verify his address before sending funds. He added that he returned the stolen goods because he "didn't want to destroy the projects."
Against the backdrop of this news, the price of the native Curve token rose by almost 6% and reached $0.61. CRV holders assume that in the near future the hacker will return most of the stolen assets to the protocol.
On July 31, Curve Finance experienced a major hack that took place in two stages. Initially, hackers stole about $26 million due to a re-entry vulnerability in pools. This was followed by the second stage of the attack, during which the attackers withdrew 7.1 million CRV worth $4.4 million and 7680 WETH worth $14.37 million from the CRV-ETH pool.
The incident occurred due to a vulnerability in an outdated version of the Vyper programming language, which allowed problems with re-entry into the Curve smart code. As a result, TVL dropped from $3.26 billion to $1.72 billion, a drop of nearly 46% in 24 hours.
A number of Curve DeFi projects were affected by the attack, including JPEG'd, MetronomeDAO, deBridge, and Ellipsis. The alETH-ETH Alchemix pool lost the most — $13.6 million.
On August 3, the affected projects offered the attacker a 10% reward in exchange for the return of the stolen funds.
Contagion fears still persist
However, despite the positive news, crypto industry participants are still wary of the consequences of the exploit, which could affect some of the largest decentralized platforms.
The price of CRV after the attack fell by more than 20%. To make matters worse, Curve founder Mikhail Egorov used CRV as collateral in several lending protocols, including Aave. Over the past few days, he has sold more than 100 million tokens for $42.4 million to various buyers, including market maker Wintermute, Tron founder Justin Sun, and others, on the OTC market.
Egorov remains $65.34 million in debt across several DeFi protocols, according to Lookonchain analytics platform.
