Euler Labs crypto theft, by Matt Aldridge, OpenText Cybersecurity
March 2023 by Matt Aldridge, Principal Solutions Consultant, BrightCloud at OpenText Security Solutions
UK cryptocurrency start-up Euler Labs has lost almost $200m as a result of a devastating cyber-attack. This is due to hackers identifying and exploiting a vulnerability in Euler Labs’ code which allowed them to steal a significant amount of money in various digital currencies. You can find the full story here: UK Crypto Firm Loses $200m in Cyber-Attack
Comment from Matt Aldridge, Principal Solutions Consultant, OpenText Cybersecurity, on Euler Labs crypto theft
“The cryptocurrency space continues to be rife with risk from a cybersecurity perspective. One of the downsides of largely unregulated currencies is that there is no organisation or authority that victims can appeal to for refunds or simply for justice. In this case, it’s unlikely that the immense sum of $200 million, stolen anonymously via a code vulnerability, will be easily traced or fully recovered. Euler has confirmed that, even though they took immediate action, the stolen sum is already being laundered through a blacklisted mixer service.
This theft is another stark reminder that while cryptocurrency itself is theoretically reliable and safe, in practice it rarely is, with points of transaction such as loans and exchanges being especially vulnerable, as well as the endless targeting of crypto wallets. We would not recommend that anyone jumps headlong into crypto investments with large sums before taking the time to learn about the architecture and pitfalls of virtual currencies. Very often, stolen funds are completely unretrievable from a legal or practical standpoint, which is a significant risk that every consumer should keep in mind.”