Curve Finance Hacker Initiates Returning Stolen Funds

Curve Finance Hacker

The notorious hacker who broke into Curve Finance, a leading Decentralized Finance (DeFi) protocol, has begun the process of restoring the stolen cash, marking a dramatic turn of events. This unanticipated event is a big win for the DeFi ecosystem.

The attack first caused shockwaves across the DeFi ecosystem since the hacker stole around $24 million via a breach in the Curve Finance protocol.

Instead of hiding or selling the stolen funds, the person has decided to return them. According to Etherscan’s analysis of the blockchain, the hacker refunded the developer wallet used by Alchemix Finance to the tune of around 4,821 Ether ($8,891,578) in three separate transactions.

Sudden Shift

It all started with a single Alchemix Ethereum (alETH) transaction that served as a test to see whether the funds could be returned. Later, Alchemix Finance received a larger sum, equivalent to around $1.7 million, in the batch of 1,000 alETH.

Another transaction with 3,819 alETH, worth about $6.7 million at the time, followed this large return shortly thereafter. The crypto world has been abuzz with theories to explain this sudden shift, but the reasons behind it remain unknown. It’s worth mentioning that the hacker may be prepared to make amends if he or she decides to repay a significant portion of the stolen assets.

Another degree of complication is introduced by returning the monies to Alchemix Finance rather than to Curve Finance. The hacker’s judgment or a calculated risk assessment of the relative weaknesses of the two protocols might both be at play here.

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Abhishek Chatterjee