Curve attacker begins to return stolen funds after bounty issued

The attacker who focused Curve Finance, a decentralized finance (DeFi) protocol, has begun returning a number of the stolen funds. The attacker sent 4,821 Ethereum (ETH), value roughly $9 million, in a collection of transactions to Alchemix Finance, one of many victims.

Earlier right now, the attacker had despatched an on-chain message to Alchemix, asking the protocol to verify its handle earlier than the funds have been despatched. The attacker additional explained that he returned funds as a result of he didn’t need to damage the tasks.

Following the information, Curve’s CRV token noticed a value rally of practically 6%, reaching $0.61640. This was prompted by speculations inside the neighborhood that the attacker would possibly return extra of the stolen funds to the protocol.

On July 30, a number of DeFi tasks suffered a reentrancy assault after a number of variations of Vyper, a sensible contract language for the Ethereum digital machine (EVM), have been exploited by malicious gamers. Experiences estimated that losses throughout these tasks have been greater than $60 million.

The impacted tasks had offered the attacker a ten% bounty on Aug. 3 in alternate for the return of funds stolen.

Contagion fears persist

In the meantime, the assault had wider implications, presenting a contagion threat. The worth of Curve’s native token, CRV, fell by greater than 20% after the assault. The state of affairs was additional sophisticated by the truth that Curve’s founder, Michael Egorov, had used CRV as collateral on a number of lending protocols, together with Aave

Since then, Egorov has been concerned in a fire sale of CRV, promoting over 100 million tokens for $42.4 million to totally different entities, together with market maker Wintermute, Tron founder Justin Solar and others, by way of over-the-counter offers.

Nonetheless, on-chain analyst Lookonchain reported that Egorov nonetheless has $65.34 million in debt throughout totally different DeFi protocols.

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