Platypus Finance Recovers 90% of Assets Lost in Recent Security Breach
Summary:
Platypus Finance, a DeFi protocol, has recovered 90% of assets stolen in a security breach last week. The net loss was about 18,000 Avalanche tokens, equal to $167,400. Hackers voluntarily returned the looted assets, hence the protocol won't pursue any legal action. Platypus, which experienced three distinct flash attacks this year, has currently halted all liquidity pools and is undergoing a security audit.
Platypus Finance, a decentralized finance (DeFi) protocol, recently confirmed the recovery of 90% of assets looted in a security violation last week. On October 17, the protocol's creators stated in an announcement that its direct loss was confined to "18,000 Avalanche," valued at about $167,400 during the publication. The offender returned the funds voluntarily, prompting Platypus Finance to assure that they will not seek any legal proceedings. The developers also hinted at a future release of withdrawal details concerning users' assets.
In three distinct flash loan assaults on October 12, the automated market maker on the Avalanche blockchain lost $2.23 million. The project, which raised $3.3 million through funding led by the subsequently dissolved crypto hedge fund Three Arrows Capital in 2021, has seen its liquidity pools paused by its developers, and a security inspection is underway after the most recent attack.
In a flash loan assault, an offender capitalizes on a loophole allowing them to borrow cryptocurrency instantly without submitting the required transactional collateral. The attacker then extracts these borrowed assets from the protocol, leaving the protocol treasury or users to manage the bad debt.
Earlier this year, Platypus fell victim to two other attacks, with the one in July depleting $157,000 and another flash loan attack exploiting the DeFi protocol for $8.5 million. After the incident in February, Platypus committed to refunding at least 63% of users' lost assets as per their recovery strategy.
Platypus tweeted on Oct 12, "the net loss has been reduced to approximately 18k AVAX, and over 90% of the assets have been recovered. As we progress, we will share more details about the arrangement of withdrawals."
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Published At
10/17/2023 4:30:00 PM
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