To everyone’s surprise, decentralized finance (DeFi) platform Platypus Finance has recovered 90% of the assets lost during a recent security breach. The latest breach bled the platform by $2.23 million in a flash loan attack.
The net loss was limited to $167,000 after the funds were voluntarily given back by the hacker. Platypus will not pursue any legal action against the hacker.
The automated market maker running on the Avalanche Blockchain suffered three different flash loan attacks on October 12. Such attacks allow hackers to borrow crypto instantly by exploiting the platforms vulnerabilities. It directly puts the bad debt burden on users or the platform.
Developers at Platypus have acted swiftly to enhance security for their users. All liquidity pools have been halted and a security audit has been initiated, as per the developers.
Previous attacks on Platypus
Platypus Finance has experienced threats like this before in 2023. The platform suffered a loss of almost $8.5 million in February as a result of a flash loan attack. The Platypus stablecoin was also de-pegged from its $1 value as a result of the hack. Another flash loan assault cost the platform $157,000 in July.
Concerns with DeFi security have been raised because of numerous security breaches that have occurred this year. Hackers continue to take advantage of weaknesses despite constant efforts to strengthen security systems.
These repeated breaches serve as an example of the difficulties DeFi platforms confront in keeping up with the constantly changing strategies used by bad actors. The appeal of the DeFi market also makes it a profitable target for hackers.