Case summary
What happened
Euler V1 was exploited on 2023-03-13 for approximately USD 197 million in assets. Euler reported that negotiations over the following weeks resulted in recovery of the stolen funds available for recovery, after which the community established a redemption process for affected users. Rather than treating the exploited V1 deployment as uninterrupted, CYA records the exploit and recovery as a distinct lifecycle event and the later Euler V2 launch as the project's rebuilt successor architecture.
Customer result
Customer outcome
Not applicable
This was an exploit recovery and protocol redemption process rather than a bankruptcy claims process. Euler states that users' assets were fully recovered at the aggregate protocol level, but CYA does not assign a universal per-position recovery percentage without position-level evidence.
- Estimated recovery
- Not applicable
- Repayment started
- 2023-04-12
- Repayment completed
- —
- Confidence
- High
Asset treatment
Terms risk
Varies by product
Euler V2 uses a modular architecture built around vault and connector infrastructure. CYA therefore avoids projecting V1 contract behavior or exploit mechanics onto every V2 market and records product-level terms and smart-contract risk separately from the historical V1 incident.
- Affected product
- Euler lending markets
- Confidence
- High
Euler positions are represented through non-custodial smart contracts rather than a centralized account claim. User economic exposure depends on the specific lending market, collateral and liability configuration, and protocol code governing the position.
Source: Introducing Euler V2: The Credit Layer for Programmable Finance
Known unknowns
Uncertainty
The return of exploit-linked assets and the subsequent redemption mechanism are well documented, but CYA does not infer identical economic outcomes for every historical position from the aggregate recovery statement alone. Euler V2 is a rebuilt protocol architecture rather than evidence that Euler V1 operated continuously through the incident.
Chronology
Historical record
Euler V1 exploit leads to protocol pause, fund recovery and redemption process
Euler V1 was exploited on 2023-03-13 for approximately USD 197 million in assets. Euler later reported that all recoverable funds had been returned following negotiations with the exploiter, and the community published a mechanism for restoring assets to affected users. The incident ended the normal lifecycle of the affected V1 deployment; the project subsequently rebuilt and relaunched under the Euler V2 architecture.
Aggregate fund recovery, user redemption and the later V2 relaunch are related but distinct facts. This event does not equate the V2 system with uninterrupted V1 operation.
Source record
Evidence dossier
Filter by claim, reliability, source type, and whether evidence is linked to a specific event.
customer outcome
1 sourcesPlan for Redemption of Euler Funds V2
Euler Governance Forum · 2023-04-12
First-party community redemption plan describing how recovered assets would be distributed to Euler users after the protocol was disabled.
Entity
1 sourcesIntroducing Euler V2: The Credit Layer for Programmable Finance
Euler Finance
First-party Euler V2 launch material establishing that Euler relaunched with a new modular lending architecture rather than continuing the affected V1 codebase unchanged.
Event
2 sourcesSpecial Announcement — exploited funds successfully recovered
Euler DAO Foundation · 2023-04-04
First-party announcement states that the 2023-03-13 exploit extracted approximately USD 200 million and that all recoverable funds were returned following negotiations.
Euler hacker returns remaining funds, ending recovery effort
The Block · 2023-04-04
Independent contemporary reporting corroborating the approximately USD 197 million exploit and return of the outstanding recoverable funds.
No evidence records match the current filters.
Comparative records