Euler Labs, a DeFi protocol, has fallen victim to a recent hack, resulting in the loss of almost $200 million.
In an attempt to recover some of the stolen funds, the developers of the protocol have made a bold move by approaching the hacker directly.
The developers requested that 90% of the funds be returned in exchange for not pursuing legal action against the attacker. The hacker has been given 24 hours to comply, or else face the “legal consequences.”
To aid in the search for the hacker, the Euler team has set aside $1 million as a reward for any information leading to the arrest of the hacker and the return of the stolen funds.
The announcement was made through a blockchain transaction sent to the attacker’s address, with a warning that failure to comply will result in a program to pay the reward.
Previously, the developers had approached the hacker in a more polite manner to discuss potential steps to resolve the situation.
The team has emphasized that they are working with law enforcement agencies and analytics firms to investigate the breach, and that the smart contract code had been audited by several computer security specialists prior to the hack. The vulnerability in the protocol’s smart contracts had gone undetected.
The stolen assets were valued at $197 million, with the hacker utilizing instant loans to take advantage of the vulnerability. The developers have requested the return of $176.4 million, allowing the hacker to keep $19.6 million.