• Platypus Finance, a DeFi protocol for stablecoins, was hacked last week and lost $9 million.
• The protocol worked with crypto exchange Binance to identify the hacker responsible for the attack.
• Platypus has managed to recover at least 63% of funds and is working with law enforcement and Aave’s governance forum to release other assets.
Platypus Finance Hack
Platypus Finance, a decentralized finance (DeFi) protocol for stablecoins, suffered a hack last week in which $9 million was stolen from the platform. The Avalanche-based protocol has since worked with crypto exchange Binance to identify the exploiter responsible for the attack and has managed to recover at least 63% of user funds.
Exploit Details
The exploit consisted of three consecutive attacks. The first attack drained $8.5 million worth of digital assets from the main pool, including Circle’s USDC, Tether’s USDT, Maker’s DAI and Paxos’ binance USD. The second attack mistakenly transferred $380,000 of stablecoins to lending protocol Aave. The hacker used a Binance account that went through know-your-customer checks for a withdrawal request.
Recover Funds
Platypus Finance recovered $2.4 million of stolen USDC stablecoins with the help of blockchain security firm BlockSec while Tether froze $1.5 million of stolen USDT as well as filed a complaint in France and contacted law enforcement agencies about the incident. Additionally, Platypus submitted a proposal to Aave’s governance forum for releasing those assets worth around $287,000 back into its platform safely without any losses incurred by users affected by this attack..
Repayment Plan
Platypus Finance said it will repay a minimum of 63% of funds to users after recovering part of them back from their attacker successfully under its repayment plan In order ensure greater security going forward, it also implemented new measures such as additional solvency checks on all pools along with various bug fixes in its system protocols .
Conclusion
Overall despite this unfortunate event causing some financial loss on both sides; Platypus Finance is taking active steps towards restoring user trust in its system by recovering most funds back from attackers & implementing various precautionary measures that should make DeFi protocols more secure against similar attacks in future