Decentralized finance (DeFi) is once again hit by a worrying event. On-chain data shows that addresses linked to the recent Euler Finance exploit and last year’s Axie Infinity’s Ronin network hack have interacted, media reports said.
An entity that exploited Euler Finance’s protocol sent 100 Ether to a wallet associated with the Lazarus Group, accused of carrying out Ronin network hack. However, it remains unclear whether Lazarus Group was involved in the Euler Finance attack or has any affiliation with the entity behind it.
This news raises concerns about coordinated attacks on DeFi protocols and highlights the need for increased caution when investing in these projects.
This news follows the addition of Lazarus Group, the North Korean hacking group believed to be behind the Ronin network hack, to the U.S. Department of Treasury’s list of designated entities in April.
The Federal Bureau of Investigation (FBI) had accused Lazarus Group and APT38, two North Korean hacking groups, of being responsible for stealing $100 million in cryptocurrency from Horizon Bridge.
The attacker did not necessarily “hack” the system or break its code in order to gain access to the network. Instead, the attacker used a flash loan to manipulate the system’s internal markets with the intention of draining the system’s treasury of resources.
The linking of the two addresses has raised concerns about the potential for coordinated attacks on decentralized finance protocols. As the DeFi sector continues to grow, it remains vulnerable to such attacks, and investors must exercise caution while investing in DeFi projects.
According to CoinMarketCap data, the price of Euler is currently trading in a bearish trend, with a price decrease of 17.24% and is currently trading at $1.84 with a trading volume of $3,040,631, a decrease of 44.63% in the last 24 hours.