DeFi Protocol Platypus Loses Over $2 Million in Flash Loan Attacks
Summary:
DeFi protocol Platypus faced a series of three flash loan attacks, culminating in a total loss of over $2 million in digital assets. The company temporarily suspended all transaction pools in response. Platypus, an automated market maker (AMM) protocol, had previously suffered similar security breaches that resulted in massive losses and created a compensation portal for affected clients.
Platypus, a decentralized finance (DeFi) protocol, has suffered another flash loan attack resulting in the loss of over $2 million in digital assets. Following the security breach, the company halted all its transaction pools. Blockchain safety organization CertiK reports that the online platform has endured three separate attacks, cumulatively costing it $2.23 million. The first of these, on October 12, saw $1.2 million siphoned off, followed by a second and third within hours that netted the thieves a further $575,000 and $450,000 respectively. Amid signs of dubious activities, the company acted swiftly choosing to suspend all pools temporarily.
Automated market maker (AMM) protocol, Platypus, facilitates automated trading of digital assets via liquidity pools, as opposed to the conventional buyer-seller markets. The system secured $3.3 million in 2021 through a funding round headed by the now-insolvent Three Arrows Capital. The financial losses endured by the DeFi platform were due to a flash loan attack, an exploit where cyber thieves capitalize on a weakness enabling them to borrow cryptocurrency without offering the necessary back-up for the transaction. Notably, this was the third attack on Platypus this year. The year opened with the protocol being scammed out of $8.5 million in a similar exploit which also led to the destabilization of the Platypus USD stablecoin, causing its price to plummet from $1 to $0.48.
Further, in July, the company lost around $157,000 due to another flash loan attack. The following month, the DeFi platform initiated a compensation portal for those who lost their assets in the February attack. This portal enabled users to confirm their compensation entitlements from the platform and air their grievances ahead of the distribution of funds.
Published At
10/12/2023 10:47:54 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.