Platypus Finance Recovers 90% Of Funds Lost In $2.2M Hack | #hacking | #cybersecurity | #infosec | #comptia | #pentest | #hacker

Decentralized finance (DeFi) protocol Platypus Finance announced it has recovered approximately 90% of assets stolen during a security breach last week, totaling $2.2 million.

In an update on October 17th, Platypus said its net loss was limited to 18,000 AVAX tokens worth around $167,400. The hacker voluntarily returned the vast majority of the stolen funds.

As a result, Platypus stated that it “will guarantee that no legal action will be pursued” against the perpetrator. 

The protocol also indicated it would soon share details on withdrawal arrangements for impacted user assets.

The breach occurred on October 12,  when Platypus was targeted in three separate flash loan attacks draining its pools on the Avalanche blockchain network.

Flash loan attacks involve hackers instantly borrowing crypto without collateral and rapidly draining funds from a protocol before paying back the loan.

This marked the third hack of Platypus Finance this year after two prior incidents in February and July exploiting flash loans to steal $8.5 million and $157,000, respectively.

Following the massive $8.5 million theft in February, Platypus said it planned to return at least 63% of affected user assets eventually.

The protocol has now halted all liquidity pools pending a security audit in the aftermath of the latest attack. 

Platypus has raised $3.3 million in a 2021 funding round led by the now-bankrupt crypto hedge fund Three Arrows Capital.

While the motivations behind the voluntary return of funds are unclear, the hacker may have calculated that stealing 18,000 AVAX and escaping unscathed was preferable to risking legal repercussions down the line.

Also Read : France Police Arrest Duo for Platypus Attack


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