CRV Price Soars as Hacker Returns Funds

Updated: 07 August 2023

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The perpetrator of the $61 million Curve Finance heist on July 30 has returned some of the stolen CRV funds.

The market has responded positively to this development, pumping CRV’s price. As per the latest data from CoinMarketCap, there has been a 1% increase in the last 24 hours, with a similar boost in the token’s market capitalization.

DeFi Heist That Cost Millions

On July 30, a reentrancy bug allowed for a hack on the Curve Finance protocol, which resulted in the loss of around $61 million in cryptocurrency.

That bug allowed attackers to manipulate a smart contract and steal assets by repeatedly sending software commands to a protocol.

1/ The $50M Curve hack 🧵: a simplified explanation to @vyperlang #Vyper's enabled reentrancy vulnerability #ELI5 https://t.co/DZihDOLqo0

— Tal Be'ery (@TalBeerySec) July 31, 2023

The assault was linked to flawed Vyper code, which runs some of the Curve system’s programming.

This exploit impacted several stable pools programmed in Vyper, including the Alchemix Finance alETH-ETH, JPEG-pETH-ETH, and Metronome sETH-ETH pools.

Soon after the attack came to light, some impacted protocols quickly offered a reward for returning the stolen funds.

Announce of Bounty and Return of Funds

On August 3, Curve, Metronome, and Alchemix announced a 10% bounty of the stolen CRV funds as a reward, pleading with the exploiter(s) to return the other 90%.

The attackers listened and started returning the stolen assets stolen a few days back, less than 24 hours after the offer.

Eventually, all the $22 million worth of ether (ETH) and derivatives taken from the lending protocol AlchemixFi were returned.

We are extremely happy to announce that all funds stolen by the hacker of the Alchemix @CurveFinance pool have now been returned.

Full post mortem coming.

— Alchemix (@AlchemixFi) August 5, 2023

A trading bot returned 90% of ETH looted from JPEGd, while ethical hacker “c0ffeebabe.eth” returned nearly $6 million from the Curve trading pool and Metronome synthetic protocol.

In an on-chain message that appears to have been addressed to the Alchemix and Curve teams, the hacker said, “I’m refunding not because you can find me; it’s because I don’t want to ruin your project.”

Funds Still Missing

$18 million of funds are still missing, prompting Curve Finance to open the bounty to the public. “We now extend the reward to the public and offer a reward valued at 10% of remaining exploited funds (currently $1.85M) to the person who can identify the exploiter in a way that leads to a conviction in the courts,” it announced on Saturday.

#PeckShieldAlert A total of ~$73.5M worth of cryptos on #Ethereum were stolen in the #Curve Reentrancy exploit. So far, ~73% of them (~$52.3M) have been returned.

The remaining ~$19.7M worth of cryptos on #Ethereum have not yet been returned by the 1st Curve CRV-ETH exploiter… pic.twitter.com/hU4v1UATeh

— PeckShieldAlert (@PeckShieldAlert) August 7, 2023

The protocol added, “If the exploiter chooses to return the funds in full, we will not pursue this further.”

Curve DAO Price Soars On News

The Curve DAO has received this news positively, with the CRV price experiencing a double-digit spike on the daily charts.

The upper wicks of the green candles on the 4th and 5th of August show an 11% increase.

For the past two days, however, the price has stabilized. Also, there has been a significant drop in CRV’s trading volume – by 46.23%. At 8:27 am EST, the DAO token is trading at $0.62.

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