• Last week, a hacker exploited a bug in the Platypus Finance protocol to steal $9.2 million worth of digital assets.
• The protocol has since managed to recover $2.4 million of USDC stablecoins and Tether froze $1.5 million of stolen USDT.
• Platypus Finance has promised to repay users at least 63% of their funds.
Platypus Finance Suffers Major Hack
Last week, the Avalanche-based protocol Platypus Finance was hacked for $9M worth of digital assets. The exploit took advantage of a bug in the platform’s solvency check mechanism, leading to its native stablecoin USP being depegged from the dollar.
Recovery Efforts So Far
The protocol worked with crypto exchange Binance to identify and confirm the identity of the exploiter responsible for last week’s attack, who used a Binance account that had gone through know-your-customer checks for a withdrawal request. Additionally, blockchain security firm BlockSec recovered $2.4 million worth of USDC stablecoins while Tether froze $1.5 million worth or USDT tokens stolen from the hack. Furthermore, around $380K of stablecoins were mistakenly transferred to lending protocol Aave; however Platypus has submitted a proposal to Aave’s governance forum for release of those funds as well.
In light of these efforts, Platypus is planning on repaying at least 63% of user funds that were lost in the attack back to them – an unprecedented level given most protocols are unable to recover any funds after such hacks occur.
A Rampant Problem
The exploit on Platypus is another reminder that hacking continues to be one of crypto’s biggest problems and platforms need stronger security measures in order protect user assets better going forward.
Law Enforcement Involvement
Platypus contacted law enforcement and filed a complaint with authorities in France regarding this incident and is working with them towards resolving this situation further as well as pursuing legal action against those responsible for it..