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The Curve Hacker Started to Repay the Money Taken

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ByMarcel Bich

Aug 30, 2023
Curve Hacker Initiates Repayment
Marcel Bich
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The perpetrator of the attack on the decentralized Curve Finance protocol started returning the stolen money. In a sequence of transactions, the hacker delivered 4821 Ethereum (ETH) to the Alchemix Finance account before sending another 5494.4 WETH to the multisignature wallet KNIFE of JPEG.

Prior to transmitting money, the hacker requested that Alchemix confirm his address in an on-chain communication. He continued by saying that he returned the stolen items rather than “destroying the projects.” The native Curve token’s price increased by roughly 6% in response to this announcement, reaching $0.61. Holders of CRVs anticipate that the attacker will soon return the majority of the stolen assets to the protocol.

The Breach on Curve

On July 31, Curve Finance experienced a significant hack that happened in two stages. Initially, a re-entry vulnerability in pools led hackers to steal around $26 million. The second phase of the attack then began, throughout which the perpetrators removed 7.1 million CRV, valued at $4.4 million, and 7680 WETH, valued at $14.37 million, from the CRV-ETH pool. Due to a flaw in an obsolete version of the Vyper programming language, issues with re-entry into the Curve smart code were possible, which led to the event. 

As a result, TVL dropped from $3.26 billion to $1.72 billion in just 24 hours, a decline of about 46%. Several DeFi-projects, including JPEG’d, MetronomeDAO, deBridge, and Ellipsis, are available on Curve. The pool that lost the most money—$13,6 million—was alETH-ETH Alchemix. On August 3, the impacted projects made a 10% incentive offer to the hacker in exchange for returning the monies that had been taken.

Contagion worries are still present.

The crypto community is still concerned about the effects of an exploit, which might have an impact on some of the biggest decentralized platforms, despite the good news.

After the incident, the price of CRV dropped by more than 20%. Mikhail Egorov, the creator of Curve, utilized CRV as collateral in a number of credit procedures, including Aave, which further exacerbated the matter. 

He has sold more than 100 million tokens for $42.4 million to several buyers over the last few days, including market maker Wintermute, Justin Sun, the founder of Tron, and others, on the OTC market. Several DeFi protocols still owe Egorov $65.34 million, according to the analytical tool Lookonchain.

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Marcel Bich

Marcel ‘s passion for the world of cryptocurrencies and his comprehensive knowledge of blockchain technology make him an invaluable asset to our team. He stays updated on the latest trends, regulations, and emerging technologies in the crypto space, ensuring that our audience receives accurate and up-to-date information.