• Platypus Finance, a DeFi protocol for stablecoins, announced that it will repay at least 63% of user funds after suffering a $9 million hack.
• The exploit was identified by the protocol working with crypto exchange Binance and law enforcement was contacted to file a complaint in France.
• A total of $2.4 million was recovered with the help of blockchain security firm BlockSec and Tether froze $1.5 million worth of stolen USDT.
Platypus Finance Suffers $9M Hack
Platypus Finance, a decentralized-finance (DeFi) protocol for stablecoins, recently suffered a major hack where $9 million was drained from the protocol last week due to an exploit in the platform’s solvency check mechanism.
Platform Repays Users 63% Of Stolen Funds
The Avalanche-based protocol worked with crypto exchange Binance to identify the exploiter responsible for last week’s attack and has since announced that it will repay at least 63% of funds to users.
Recovery Efforts Lead To Partial Recovery Of Stolen Funds
In addition to filing a complaint in France and contacting law enforcement, Platypus Finance managed to recover some assets through various efforts. Blockchain security firm BlockSec helped recover $2.4 million worth of USDC stablecoins while Tether froze another $1.5 million worth of stolen USDT assets. Meanwhile, some $287,000 worth of assets were mistakenly transferred to lending protocol Aave and Platypus has submitted a proposal asking them for release those assets back into their control.
Crypto Industry Facing Rampant Problem With Hackers
The exploit of Platypus Finance is yet another example of crypto’s rampant problem with hackers as similar incidents have happened before on other protocols such as Yearn Finance and Harvest Finance not too long ago resulting in millions being lost from users‘ wallets without any sign or trace left behind from the attackers themselves. These events serve as harsh reminders that our industry still has much work to do when it comes to ensuring its protocols are secure enough against malicious actors who seek out potential vulnerabilities within smart contracts or liquidity pools in order to get their hands on withdrawals amounting up into millions quickly without much effort or risk involved on their part aside from what is needed initially for setup purposes prior executing any attack itself..
Conclusion: Protocols Must Remain Vigilant To Protect User Funds
It is clear that more must be done when it comes improving upon existing protocols’ security measures as well as introducing new ones altogether if we want these types incidents from occurring again in future times which could result potentially worse outcomes than what we have seen so far this time around where most user funds were fortunately able reclaim back due diligence taken place afterwards by affected parties such as exchanges and blockchain firms alike used track down offending individual(s).