A concerning event has once again hit the world of decentralized finance (DeFi). The Axie Infinity’s Ronin network compromise from the previous year has communicated a worrying development that has once again rocked the world of decentralized finance (DeFi).
An entity that used Euler Finance’s protocol sent 100 ether to a wallet connected to a breach of the Ronin network that the Lazarus Group reportedly carried out. It is still unknown if Lazarus Group was engaged in the attack on Euler Financial or is connected to the organization responsible for the assault.
Ronin Bridge Exploiter was listed by #OFAC as Lazarus Group – the North Korean state hacking group.
— Lookonchain (@lookonchain) March 17, 2023
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DeFi danger: Coordinated protocol attacks
The necessity for heightened prudence when investing in such initiatives has been highlighted, and worries regarding coordinated assaults against DeFi protocols have been raised due to this news.
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 suspected that two North Korean hacking outfits known as Lazarus Group and APT38 were responsible for the theft of one hundred million dollars worth of cryptocurrencies from Horizon Bridge.
For the attacker to get access to the network, it is crucial to remember that the attacker did not necessarily “hack” the system or violate its programming. Instead, the attacker used a flash loan to manipulate the system’s internal markets to deplete the system’s treasury of resources to accomplish their goal.
DeFi Coordination Threats
The linkage of the two addresses has caused some people to express alarm over the possibility of coordinated assaults against protocols for decentralized financial transactions. As the blockchain industry expands, it will continue to be susceptible to assaults of this kind; thus, investors must proceed with extreme care when investing in blockchain ventures.
Based on recent data from CoinMarketCap, Euler’s current market trend appears to be bearish, resulting in a substantial 17.24% price drop. Euler is currently trading at $1.84 with a trading volume of $3,040,631. The last 24 hours show a significant decrease of 44.63% in trading volume, leading to some uncertainty amongst investors.
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