Euler Finance Users Redeem $133 Million, DeFi Insurer Wants Money Back From Hack Victims

DeFi insurance firm Nexus Mutual is seeking the recovery of $2 million in claims paid out to Euler Finance hack victims, who have since redeemed their funds.

One Euler Finance hack victim has already traded away the 200 ETH he owes, said an executive at DeFi insurance firm Nexus Mutual.

According to a Wednesday report from CoinDesk, five policyholders are yet to pay back the claims they received from Nexus Mutual, which collectively amount to $2 million.

After exploiting the protocol for nearly $200 million in March, the Euler hacker returned the entirety of his loot last week. Shortly after, the Euler team announced a plan to reimburse affected users and enabled redemptions on April 12.

At the time of writing, 457 users had redeemed $133 million from Euler Finance, according to data from Dune Analytics. 

Since the victims of the exploit now have an avenue to get their money back, those that received a policy payout from insurers like Nexus will likely have their claims void.

“This is the first claim event where an exploited protocol was able to recover the lost funds from the attacker,” said Nexus Mutual’s head of communications BraveNewDeFi to CoinDesk. 

The terms of their policy stipulated that they were obliged to return the value of their claims to Nexus Mutual in the event that the hacker returned the funds. Despite this, two policyholders who redeemed funds from Euler on Wednesday, have been seen swapping these funds for other cryptos on chain.

Nexus Mutual has contacted the Euler team about the issue and could potentially pursue legal action against those that haven’t returned the value of their claims.