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)
ClosePlease loginn

Related Posts

Trump NFT sales volume soars 461% following indictment

Trump NFT sales volume soars 461% following indictment

Trump has lashed out at the news of his indictment, calling it a “political persecution.”

Bookmark (0)
ClosePlease loginn
XRP Perpetual Futures Open Interest skyrockets to $610 million

XRP Perpetual Futures Open Interest skyrockets to $610 million

The XRP derivative market indicates strong positive sentiment, some expect the SEC lawsuit to conclude soon.

Bookmark (0)
ClosePlease loginn

Binance Fan Token Platform Launches Alpine Race Collectibles for Unique F1 Experiences

Bookmark (0)
ClosePlease loginn
CNBC’s Jim Cramer calls Binance “way too sketchy”

CNBC’s Jim Cramer calls Binance “way too sketchy”

Crypto community reacts to Jim Cramer’s comments on Binance with humor and irony amid mounting regulatory pressures.

Bookmark (0)
ClosePlease loginn
CryptoSlate wMarket Update: Mixed market performance sees Bitcoin drop below $28,000

CryptoSlate wMarket Update: Mixed market performance sees Bitcoin drop below $28,000

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)
ClosePlease loginn
KCC upgrade to enhance performance goes live on testnet

KCC upgrade to enhance performance goes live on testnet

The fan-built KCC V.1.3.0 upgrade focuses on merging upstream code, enhancing performance, and resolving bugs.

Bookmark (0)
ClosePlease loginn

Leave a Reply

Your email address will not be published.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