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🌰 3 wiki articles: DeFi exploits and exchange failures (Euler Finance, Nomad Bridge, BitGrail)#522

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🌰 3 wiki articles: DeFi exploits and exchange failures (Euler Finance, Nomad Bridge, BitGrail)#522
joshua-deng wants to merge 1 commit into1712n:mainfrom
joshua-deng:wiki-defi-exploits-bridges

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Summary

Three new market health wiki articles documenting major DeFi exploits and exchange failures:

  1. Euler Finance ($197M flash loan exploit, March 2023)

    • donateToReserves missing health check introduced by bug fix
    • Full $240M recovery after attacker "Jacob" apologized
    • Sherlock paid $4.5M insurance claim for missed vulnerability
    • 10 audits in 2 years failed to catch the bug
  2. Nomad Bridge ($190M "crowd-looting" exploit, August 2022)

    • Zero-validation initialization bug (0x00 trusted root)
    • 300+ copycat addresses drained bridge with zero technical knowledge
    • Moonbeam TVL dropped 72%, Evmos TVL dropped 76.7%
    • FTC $37.5M enforcement action; Gurevich arrested at Ben-Gurion Airport
  3. BitGrail ($170M Nano loss, February 2018)

    • Client-side-only validation with no server-side checks
    • Operator Firano knew of insolvency for months, continued accepting customers
    • Italian court declared both exchange and operator personally bankrupt
    • Landmark ruling classifying cryptocurrency as legal property

Each article includes: Summary, Background, Technical Details, Timeline, Market Impact, Market Manipulation Implications, Relevance to Market Health Metrics, and References.

Closes #277 🌰

- Euler Finance ($197M flash loan exploit, donateToReserves bug, full recovery)
- Nomad Bridge ($190M crowd-looting exploit, FTC enforcement, Gurevich arrest)
- BitGrail ($170M Nano loss, Italian bankruptcy ruling, landmark crypto property case)

Co-Authored-By: Claude Opus 4.6 <noreply@anthropic.com>
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