• Platypus Finance, a decentralized-finance (DeFi) protocol for stablecoins, will repay at least 63% of funds to users after it managed to recover a part of the $9 million drained from the protocol last week.
• The exploit consisted of three consecutive attacks, which resulted in the draining of $8.5 million in stablecoins and the transfer of $380,000 worth of assets to lending protocol Aave.
• Platypus worked with crypto exchange Binance and blockchain security firm BlockSec to identify the exploiter responsible for last week’s attack and recover funds.

Platypus Finance Hacked for $9M

Last week, Platypus Finance, a decentralized-finance (DeFi) protocol for stablecoins was hacked for $9 million. The attack exploited a bug in the platform’s solvency check mechanism and caused its native stablecoin USP to lose its dollar peg.

Protocol Repays At Least 63% Of Funds

In response to the attack, Platypus Finance announced that it would repay at least 63% of user funds after managing to recover some part of the stolen money. The DeFi protocol also revealed that it had identified the attacker by working with crypto exchange Binance and filing a complaint with law enforcement in France.

Exploit Consisted Of Three Attack

The exploit consisted of three consecutive attacks which drained a total amount of $8.5 million in different types of stablecoins such as Circle’s USDC, Tether’s USDT, Maker’s DAI and Paxos’ binance USD from the platform’s main pool. Additionally, another sum worth around $380k was mistakenly transferred to Aave Lending Protocol during one of these attacks.

Security Firm & Crypto Exchange Work With Platypus To Recover Funds

Platypus Finance recovered about $2.4 million worth USDCs through assistance from blockchain security firm BlockSec while Tether froze an additional sum amounting up to 1.5 Million USDT tokens belonging to hacker’s address wallet on their network . Lastly, Platypus had submitted a proposal on Aave Governance Forum seeking release permission from them regarding their tokens transferred mistakenly due to malicious intent or hack attack against them..


In conclusion , this is yet another example showing how hackers are still able to find loopholes even within secure protocols like DeFi platforms based on Avalanche networks . However , thanks to efforts made by both industry participants and authorities , we can see that most protocols are now better equipped with measures aimed towards preventing these kinds malicious activities or helping out recovery process after their occurrence .

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