Platypus Finance Recovers 90% of Assets Lost in Exploit

Decentralized finance (DeFi) protocol Platypus Finance announced it has recovered approximately 90% of assets stolen during a security breach last week,
Platypus Finance Recovers 90% of Assets Lost in Exploit
Platypus Finance Recovers 90% of Assets Lost in Exploit

Platypus Finance, a DeFi protocol, reported that it has recovered about 90% of the assets lost during a security compromise last week, totaling $2.2 million.

Platypus stated in an update on October 17th that its net loss was restricted to 18,000 AVAX tokens valued about $167,400. The hacker voluntarily refunded the vast bulk of stolen cash. Platypus declared as a result that it “will guarantee that no legal action will be pursued” against the culprit.

The protocol also stated that it would shortly publish information on withdrawal procedures for impacted user assets. On October 12, Platypus was targeted in three different flash loan assaults that drained its pools on the Avalanche blockchain network.

Flash loan attacks include hackers borrowing cryptocurrency without requiring collateral and swiftly draining cash from a system before repaying the loan. This was the third Platypus Finance hack this year, following two previous attacks in February and July that used flash loans to steal $8.5 million and $157,000, respectively.

Following the major $8.5 million heist in February, Platypus stated that it aimed to eventually refund at least 63% of affected user funds.

Following the current attack, the protocol has now paused all liquidity pools pending a security audit. Platypus has raised $3.3 million in a round headed by the now-defunct crypto hedge fund Three Arrows Capital in 2021.

While the reasons for the voluntary return of cash are unknown, the hacker may have determined that taking 18,000 AVAX and departing with no legal consequences was preferable to risking legal implications later on.

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