June 24, 2024
Platypus Finance, hit by a third attack this year, recovers 90% of stolen assets post-security breach.
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Platypus Finance Recovers 90% of Stolen Assets After Recent Security Breach

Platypus Finance, a decentralized finance (DeFi) protocol, has successfully recovered 90% of the assets that were stolen during a recent security breach, as stated in an announcement made on October 17. The protocol’s developers disclosed that the net loss amounted to 18,000 Avalanche, which had a value of $167,400. Importantly, the hacker voluntarily returned the stolen funds, and Platypus Finance has affirmed its commitment to refraining from pursuing any legal actions. Additionally, the developers hinted that they would soon provide information on how users can withdraw their assets.

https://twitter.com/Platypusdefi/status/1714214138514407741?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1714214140414439489%7Ctwgr%5E778826c77313131726c126aa100487858fd1ebb6%7Ctwcon%5Es2_&ref_url=https%3A%2F%2Fcointelegraph.com%2Fnews%2Fplatypus-finance-recovers-90-percent-assets-lost-exploit

On October 12, the automated market maker operating on the Avalanche blockchain experienced three separate flash loan attacks, resulting in a total loss of $2.23 million for the protocol. In 2021, the project secured $3.3 million in funding from Three Arrows Capital, which has since closed, leading the investment. Following the recent attack, Platypus developers took the proactive measure of suspending all liquidity pools and initiating a comprehensive security audit.

In a flash loan attack, a hacker exploits a vulnerability that enables them to instantly borrow cryptocurrency without the need for collateral. Subsequently, the hacker withdraws the borrowed assets from the protocol, leaving the burden of bad debt on the users or the protocol treasury.

This incident marks the third attack on Platypus Finance this year. In July, a previous attack drained $157,000 through a flash loan attack, and in another flash loan attack, the DeFi protocol suffered a loss of $8.5 million. After the February attack, Platypus had pledged to recover at least 63% of the assets lost by users in its recovery plan.

Image by freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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