• Platypus Finance, a DeFi protocol for stablecoins, will repay at least 63% of user funds after a $9 million hack.
• The exploit used a bug in the platform’s solvency check mechanism to steal digital assets, leading to its native stablecoin USP losing its dollar peg.
• The protocol worked with crypto exchange Binance and blockchain security firm BlockSec to identify the exploiter and recover stolen funds.
Platypus Finance Hacked for $9M
Platypus Finance, a decentralized-finance (DeFi) protocol for stablecoins, was hacked last week for approximately $9 million worth of digital assets. The hacker exploited a bug in the platform’s solvency check mechanism that led to its native stablecoin USP losing its dollar peg.
Funds Recovered and Repaid
In response, the protocol worked with crypto exchange Binance to confirm the identity of the exploiter responsible for the attack. It also enlisted blockchain security firm BlockSec to help recover some of the stolen funds. As a result, Platypus announced it would repay users at least 63% of their original funds.
Attack Details
The attack consisted of three consecutive stages which saw digital assets such as Circle’s USDC, Tether’s USDT, Maker’s DAI and Paxos’ binance USD drained from Platypus’ main pool. A part of these assets were sent mistakenly to lending protocol Aave where Platypus has submitted a proposal requesting their release.
Law Enforcement Involved
Apart from repaying users’ funds and working with Binance and BlockSec on recovering lost assets, Platypus also contacted law enforcement authorities and filed a complaint in France against the hacker behind this attack.
Crypto Industry Problematic Security Situation
This incident is yet another example highlighting crypto’s ongoing problem with hackers targeting protocols’ weaknesses or exploiting bugs within their codes in order to siphon off large amounts of digital assets stored within them.