Platypus Defy loses $2.2M in another flash loan scam.

Decentralized financial (DeFi) protocol Platypus has lost more than $2 million in assets after another flash lending exploit occurred on its platform. The protocol blocked all its pools in response to the attack.

According to blockchain security platform CertiK, Diffie's platform experienced three attacks, with $2.23 million in exploits taken. On October 12, the first attack took 1.2 million dollars from the platform. A second attack occurred hours later, stealing $575,000 worth of property from the platform. A minute later, a third attack occurred, with $450,000 worth of property lost.

Due to suspicious activity in our protocol, we have taken proactive measures to temporarily block all pools. Further updates will be sent to the community in due course. Thank you for your patience and understanding during this time.

— Platypus (+) (@Platypusdefi) October 12, 2023

Platypus is an Automated Market Maker (AMM) protocol that enables automated trading of digital assets instead of traditional markets where there are buyers and sellers. The platform has raised $3.3 million in funding led by now-bankrupt Three Arrows Capital in 2021.

In a flash lending attack, merchants exploit the vulnerability to instantly borrow crypto without providing the necessary collateral for the transaction.

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CertiK recently revealed that the flash loan attack is the third attack on Platypus in 2023. On February 16, the protocol lost $8.5 in the same exploit, which led to the depegging of the price of Platypus USD (USP) stablecoin. From 1 to 0.48 USD. According to CertiK, the protocol lost around $157,000 to flash lending exploits in July.

In March, the DeFi protocol created a compensation portal for victims who lost their assets in February. The portal is used to allow users to check how much compensation they can get from the platform and raise concerns before the money is distributed.

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