Platypus Finance hacked for $9M on Avalanche

The DeFi application Platypus Finance has suffered a $9 million attack, according to a series of tweets from the blockchain security firm CertiK on Feb. 16.

That report states that an attacker used flash loans on the Avalanche (AVAX) blockchain to exploit a function in one of Platypus’ smart contracts.

The attacker deposited $44 million of stablecoins into the application. With the assets obtained, the attacker could mint a similar amount of Platypus’ USP stablecoin (41.79 million USP). The attacker then exploited an emergency withdrawal function to access the original $44 million deposit and the minted USP. Finally, the attacker swapped the USP for other assets before paying back the loan.

The final difference, and the estimated loss for Platypus, was $9 million. Most of the stolen funds reportedly remain in the attacker’s contract address, though some have been sent to certain pools. Presumably, a portion of that amount can be returned or recovered.

Platypus confirmed the flash loan attack in a message on Telegram and Discord. It wrote that it is assessing the situation and will pause operations.

This line of attack is not unique to Platypus. Several other DeFi platforms have been targeted by flash loans in recent months, including Mango Markets in October, New Free DAO in September, Nirvana Finance last July, and Deus DAO last April.

Update: Platypus has recovered $2.4 million from the attack as of Feb. 18.

Posted In: , DeFi, Hacks

Bookmark (0)

Related Posts

Liquid staking tokens rally by 15% as Ethereum Shapella upgrade draws near

Liquid staking tokens rally by 15% as Ethereum Shapella upgrade draws near

Liquid staking platform tokens have seen their values increase following news that staked Ethereum withdrawals would be enabled on April 12.

Bookmark (0)
CipherTrace report reveals almost 50% of crypto total market cap was lost in 2022

CipherTrace report reveals almost 50% of crypto total market cap was lost in 2022

Despite the loss, the total crypto market cap increased over 20% from the third-quarter in to the fourth-quarter in 2022.

Bookmark (0)
BNB smart chain (BSC) receives user proposal for lower transaction fees

BNB smart chain (BSC) receives user proposal for lower transaction fees

According to the proposal, BSC’s high gas fees have led to a decline in network activity — pushing its utilization to around 15-20%.

Bookmark (0)
Gate.io suspends withdrawals of SafeMoon following public burn bug exploit

Gate.io suspends withdrawals of SafeMoon following public burn bug exploit

The attack was carried out by hackers that attacked the BNB-based chain DEX, draining $8.9 million in funds before being found.

Bookmark (0)
CryptoSlate wMarket update: XRP leads top 10 as BTC breaks $28,000 once again

CryptoSlate wMarket update: XRP leads top 10 as BTC breaks $28,000 once again

The wMarket Update condenses the most important price movements in the crypto markets over the reporting period, published 07:45 ET on weekdays.

Bookmark (0)
XRP rises 10% against Bitcoin as USD value rises to five-month high

XRP rises 10% against Bitcoin as USD value rises to five-month high

Blockchain analytical firm Santiment reported that XRP’s social dominance is at its highest point in a year following its surge to $0.49.

Bookmark (0)

Leave a Reply

Your email address will not be published. Required fields are marked *