Platypus Recovers 90% of Stolen Funds from Recent Exploit
Rebeca Moen Oct 17, 2023 13:08
Platypus DeFi protocol has recovered 90% of the funds stolen in the recent 12 October 2023 exploit, reducing the net loss to about 18,000 AVAX. The protocol acknowledged the community's support in swiftly resolving the crisis and is making arrangements for the withdrawal of liquidity providers. Amidst ongoing investigations and enhanced security measures, Platypus continues to work on a compensation plan for affected users from previous attacks.
Decentralized finance (DeFi) protocol Platypus has made significant strides in recovering assets stolen in a recent exploit. On 17 October 2023, the protocol announced via its Twitter handle, Platypusdefi, that it had successfully negotiated with the exploiter and recovered 90% of the funds siphoned off from the sAVAX pool during an exploit on 12 October 2023. The recovery reduced the net loss to approximately 18,000 AVAX. The announcement came as a relief to the Platypus community, who had been on tenterhooks since the exploit occurred.
The episode on 12 October 2023 was not the first time Platypus had been targeted. The protocol had suffered two previous flash loan attacks in 2023, losing $8.5 million in February and around $157,000 in July. Platypus had since been on a mission to enhance its security infrastructure to prevent further occurrences. However, the attacks in October, where three consecutive exploits led to a loss of over $2 million, demonstrated the persistent vulnerabilities within the protocol's system. The hackers managed to extract $1.2 million in the first attack, $575,000 in the second, and $450,000 in the third, all within a span of hours.
Platypus acknowledged the crucial role that the community played in resolving the crisis swiftly. The community's support facilitated the quick identification and resolution of the hacking incident, enabling a prompt response. The protocol expressed its gratitude towards its community members for their assistance during this trying period.
In light of these attacks, Platypus halted all pools and initiated a thorough investigation to pinpoint the root cause of the recurrent exploits. The protocol is also making arrangements for the withdrawal of all existing liquidity providers and is in the process of sharing detailed withdrawal instructions with its community. Additionally, the DeFi protocol has been working on a compensation plan for users who lost their assets in the previous attacks, demonstrating its commitment to making amends and ensuring such security breaches are averted in the future.
Meanwhile, efforts to bring the culprits to book saw some success earlier in the year when French police arrested two suspects related to the February hack, seizing around $222,000 worth of crypto assets on 25 February 2023. This action was supported by crypto investigator ZachXBT and the Binance exchange, showcasing a collaborative effort in combating crypto-related crimes.
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