DeFi Protocol Platypus Suffers $2.2 M Loss in Latest Flash Loan Attack

• As a defense mechanism, the protocol froze all of its pools over the assault.
• This latest flash loan assault marks the third such incident involving Platypus in 2023.

After another flash loan exploit on its platform, the decentralized finance (DeFi) protocol Platypus lost almost $2 million in assets. As a defense mechanism, the protocol froze all of its pools over the assault.

CertiK, a blockchain security platform, reports that $2.23 million were stolen in three separate assaults on the DeFi platform. On October 12th, the platform saw its first assault, which resulted in the theft of $1.2 million. Hours later, another assault took place, this time resulting in $575,000 in stolen assets. A minute later, a third assault happened, and another $450,000 in assets were stolen.

Third Similar Incident

Hackers engage in a flash loan assault when they discover a loophole that might enable them to borrow cryptocurrency immediately without first putting up any collateral.

According to CertiK, this latest flash loan assault marks the third such incident involving Platypus in 2023. A similar hack on February 16 resulted in a loss of $8.5 million for the protocol and caused the Platypus USD (USP) stablecoin to depeg, sending its value from $1 to $0.48. CertiK claims that in July, the protocol suffered a loss of roughly $157,000 due to a flash loan exploit.

The DeFi protocol established a compensation page in March for anyone who had lost funds in the February hack. Users were able to see how much compensation they were eligible for via the site and voice any issues they had before the funds were disbursed through the portal.

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