Platypus Finance has recovered 90% of assets lost due to exploitation

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

According to the October 17 announcement, the net loss of the protocol was determined at 18,000 AVAX (AVAX), worth $167,400 at the time of publication. When the hacker voluntarily returned the money, Platypus Finance said it “guarantees no legal action will be taken”. He also hinted that withdrawal information regarding users' property will be posted soon.

On October 12, an automated market maker running on the Avalanche blockchain suffered three separate flash credit attacks that depleted its protocol of $2.23 million. In the year In 2021, the project raised $3.3 million in funding led by now-defunct crypto hedge fund Three Arrows Capital.

Since the latest attack, Platypus has stopped all liquid pools and is conducting safety audits. In a flash lending attack, a hacker exploits a vulnerability that allows them to instantly borrow crypto without providing the necessary collateral for the transaction. The hacker then withdraws the borrowed assets from the protocol, leaving bad debt to users or the protocol treasury.

This is the third attack on Platypus this year, following a $157,000 flash loan attack in July and another flash loan attack using the Defin protocol for $8.5 million. Following the February incident, Platypus said in its recovery plan that it would return at least 63 percent of users' assets lost in the attack.

2/ With the recovery on October 12, more than 90% of funds have been recovered. Net loss reduced to 18k AVAX. We will be releasing more information about exit arrangements in the process.

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

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