Platypus DeFi Faces Third Exploit in 2023, Suspends Pools to Address Security Concerns

Flash Loan Attacks Continue to Plague the AMM Protocol, Totaling $2.23 Million in Losses

Platypus DeFi, a prominent automated market maker (AMM) protocol, has fallen victim to three flash loan exploits in 2023, resulting in a combined loss of $2.23 million. These recent incidents have prompted the protocol to take decisive action in safeguarding user assets.

- Advertisement -

In the most recent attack on October 12, the first of the three exploits saw malicious actors making away with $1.2 million. Shortly after, a second attack followed, stealing $575,000, with a third attack occurring just a minute later, resulting in $450,000 in losses. These alarming security breaches have raised serious concerns within the Platypus DeFi community.

In response to the exploits, Platypus DeFi took the proactive step of suspending all its pools to assess and address the underlying vulnerabilities. The decision to suspend the pools was driven by the need to investigate suspicious activities and ensure the safety of users’ assets.

The protocol has assured its community that updates regarding the suspension and security enhancements will be communicated in due course, expressing gratitude for the patience and understanding of its users during this challenging period.

Platypus DeFi’s foray into the DeFi ecosystem began with a funding round in 2021, which raised $3.3 million and was led by Three Arrows Capital.

It is worth noting that Three Arrows Capital, the prominent investment firm, has since faced financial turmoil, further complicating the situation.

Flash Loan Attacks – A Recurring issue in the DeFi Space

Flash loan attacks have become a recurring issue in the DeFi space. These attacks involve exploiting vulnerabilities in the system, allowing traders to borrow cryptocurrency without the need for collateral, resulting in substantial financial losses for the targeted platforms.

- Advertisement -

Prior to the recent wave of exploits, Platypus DeFi had established a compensation portal for victims of a February attack that led to an $8.5 million loss and the depegging of the Platypus USD stablecoin.

Another flash loan exploit in July resulted in approximately $157,000 in losses. The compensation portal was initiated to alleviate the impact of previous attacks and provide support to affected users.

As Platypus DeFi works to bolster its security measures and recover from these flash loan exploits, the broader DeFi community closely watches, hoping for a resolution that can safeguard users and restore trust in the platform.

- Advertisement -

🔴 LATEST POSTS

Previous Articles:

Stay in the Loop

Get exclusive crypto insights, breaking news, and market analysis delivered straight to your inbox. No fluff, just facts.

    1 Email per day. Unsubscribe at any time.

    - Advertisement -

    Latest News

    Salesloft Drift Supply Chain Attack Hits 700+ Firms, Data Stolen

    Salesloft is temporarily taking its Drift chatbot service offline after a supply chain attack...

    Stablecoin Surge Ties Crypto Liquidity Closer to Fed Policy

    Stablecoin market size has nearly doubled to $280 billion in the past year, further...

    Venus Protocol User Loses $13M in Phishing; Funds Recovered

    A Venus Protocol user lost $13.5 million in a phishing attack.The protocol was temporarily...

    Coinbase Launches Mag7 + Crypto Equity Index Futures in U.S.

    Coinbase is launching a new hybrid futures index in the U.S. that combines crypto...

    Lazarus Group Targets DeFi Firm with Trio of Advanced RAT Malware

    North Korean Hacker group Lazarus ran a 2024 cyber campaign targeting a decentralized finance...

    Must Read

    Top 7 BEST Crypto Trading Bots for Beginners

    QUICK NAVIGATIONQuick Look: Top 3 Best Crypto Trading BotsWhat Exactly is a Crypto Trading Bot?How I Chose These Trading BotsTop 7 Crypto Trading Bots...