Platypus Finance recovers 90% of assets lost in exploit

Decentralized finance (DeFi) protocol Platypus Finance said it has recovered 90% of the assets stolen due to a security breach last week.

According to reports on October 17 announcementThe developer said the protocol’s net loss is limited to “18,000 Avalanche,” worth $167,400 at the time of publication. Since the hackers voluntarily returned the funds, Platypus Finance said it “will ensure that no legal action will be taken.” The developers also hinted that withdrawal information about user assets will be released soon.

On October 12, the automated market maker running on the Avalanche blockchain suffered three separate flash loan attacks, resulting in a $2.23 million loss to the protocol. In 2021, the initiative raised $3.3 million in funding, led by now-defunct cryptocurrency hedge fund Three Arrows Capital.

Since the latest attack, Platypus developers have stopped All liquidity pools are undergoing security audits. In flash loan attacks, hackers exploit a vulnerability that allows them to instantly borrow cryptocurrency without providing the collateral required for the transaction. The hackers then withdraw the borrowed assets from the protocol, leaving bad debts borne by the users or the protocol treasury.

This is the third attack on Platypus this year. The previous one occurred in July, with a loss of $157,000 through a flash loan attack. The other incident was also a flash loan attack, with a loss of $8.5 million using the DeFi protocol. After the February incident, Platypus claimed that it would return at least 63% of users’ assets lost in the attack through a recovery plan.

2/ With the recovery on October 12, more than 90% of the funds have been recovered. Net losses have dropped to approximately 18k AVAX. We will release further information on withdrawal arrangements as progress is made.

— Platypus(++) (@Platypusdefi) October 17, 2023