Key takeaways :
- Platypus Finance, a DeFi protocol on the Avalanche network, has experienced another security breach.
- PeckShield has verified the breach, which has led to over $2 million in losses for the platform.
On Thursday, Platypus, an Avalanche-native StableSwap protocol, took the decision to halt all of its pools due to the discovery of a flash loan exploit on their DeFi platform.
The initial report of this platform attack came from PeckShield, which disclosed that the exploit resulted in losses exceeding $2 million. The attackers employed a technique known as a flash loan attack, allowing them to borrow digital assets without the need for collateral.
CertiK’s report further detailed that the DeFi platform fell victim to three distinct attacks, ultimately resulting in a total loss of $2.23 million. The first attack occurred on October 12, amounting to $1.2 million in losses. Shortly after, a second attack followed, siphoning off $575,000, and within minutes, a third attack inflicted losses totaling $450,000.’
Platypus, in contrast to conventional methods, facilitates automated electronic trading of digital assets. Although they received investments in 2021, these investors are no longer involved with the project. The entire Platypus team is actively engaged in communication with various stakeholders, working diligently to recover the funds tied up in the compromised contracts. They are also committed to identifying the root cause of this exploit and tracing the hacker(s) behind the attack. Regular updates will be shared with the community as the situation unfolds.
In March, the DeFi protocol initiated a compensation portal for victims who suffered losses during a previous attack in February. This portal allowed affected users to assess the amount of compensation they were eligible for and offered them a platform to voice their concerns before the distribution of funds.
Platypus Finance has unfortunately experienced a security breach in the past. In February 2023, a similar flash loan attack had a significant impact, resulting in a staggering loss of $8.5 million. Notably, the attackers specifically targeted the platform’s recently introduced stablecoin, USP, underscoring the vulnerability of new DeFi projects.
In 2023, the platypus experienced its third setback. The first incident in February led to a significant loss of $8.5 million due to the depreciation of its digital currency, Platypus USD. The second occurred in July, resulting in losses of approximately $157,000.
