Platypus Finance recovers 90% of stolen assets after security breach

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The DeFi protocol retrieved 90% of pilfered assets, and has opted not to pursue legal action against the hacker.

protocol, has reclaimed 90% of the assets that were pilfered during a security breach in the prior week. The platform managed to limit its net loss to 18,000This impressive retrieval was facilitated by the hacker’s voluntary return of the stolen assets. In a noteworthy move, Platypus Finance declared its decision to not pursue any legal action against the hacker.

The security breach unfolded on 12 October. It began when the automated market maker operating on the Avalanche blockchain was subjected to three separate flash loan attacks. These malicious attacks siphoned a substantial $2.23 million from the protocol, marking a significant loss. Flash loan attacks typically exploit vulnerabilities that enable hackers to borrow cryptocurrencies instantly, often without providing the requisite collateral. Subsequently, the hacker absconds with the borrowed assets, leaving the burden of bad debt on users or the protocol’s treasury to shoulder.

The preceding attack in February was significantly more damaging, with the DeFi protocol falling victim to an $8.5 million exploit.

 

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