Platypus Suffers A $8.5M Flash Hack, But What Actually Happened

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Platypus is one of the most famous decentralized platforms. But most recently Platypus has suffered a loss of $8.5 million due to the flash-loan attack.

But the top leadership of Platypus was able to locate the hackers and successfully recovered the funds, some on-chain investigators played a crucial role in this recovery.

Back on Thursday, the DeFi firm saw the bug in its USD-related framework, hackers were quick to capitalize on this situation and stollen funds worth $8.5 million.

According to Platypus officials, the hackers used a flash loan to circumvent the logic error of the mechanism. But the loss was recovered shortly.

Officials Confirmed That $8.5M Worth of Assets Were Stolen

The company officials said that hackers enter thoroughly wallets through the main pool. Hackers did manage to infiltrate a few wallets to steal $8.5M worth of assets.

As this attack happened, the platform’s Platypus USD stablecoin quickly lost its peg with the USD.

As the token is no longer pegged with the USD, its price has dropped by 66% and the current is $0.33.

Before this loan attack, Platypus USD was valued at $1. Further details have shown that the company only recovered 85% of its lost funds.

Moreover, apart from the main pole, the remaining poles remained untouched.

It has also been told that the DeFi platform is in talks with hackers over the return of remaining funds.

Platypus also contacted the leading cryptocurrency exchanges to freeze the stolen funds so they might become useless to the hacker.

The other side of the story reveals that recently too many DeFi protocols have experienced hack attacks.

This can once more force the regulatory authorities to claim that the digital currency market is not safe for investors, and this can lead to a further regulatory crackdown.

The current situations seem nasty for Platypus and for the entire cryptocurrency space.

On-Chain Detective ZachXBT Traced the Hacker

ZachXBT highlighted that a deleted Twitter account that goes by the name of @retlqw we the culprit who launched this attack.

ZachXBT also pointed out that the deleted account was connected with Platypus officials’ Twitter account.

In his tweet, the on-chain detective said that he contacted the development team of Platypus and told them that he can offer some help.

Platypus is no now negotiating with the hacker without involving the regulatory authorities.

In case things don’t go according to plan, regulators might investigate the situation.

The current scenario is immensely disturbing for Platypus because it can be the next platform on SEC’s list if investors’ funds don’t recover fully.

Previously, SEC has not only bas the Paxos from offering Binance stablecoins but also cracked down its operations.

SEC clearly stated that Binance Stable coin issuance can be a security risk for investors, similar is the case of Platypus, the current hack has robbed investors of their money.

Over the past couple of weeks, regulators are hitting hard on the stablecoins as they believe that there are still some technical loopholes.

Platypus’s top leadership is doing its best to stay out of a tussle with SEC and other regulators.

Platypus has fixed the bug in its main pole with the help of a blockchain firm BlockSec. BlockSec is famous for integrating the security of crypto platforms.

Moreover, both of these firms are also planning to exploit the hacker’s digital wallet to exploit the USDC funds worth $2.4 million.

The recent attack on Platypus surfaced at a time when exploits and hacks in the world of crypto are once more taking the center stage.

Back in 2022, cryptocurrency investors across the globe lost the amount of $4 billion thanks to hacks, fraud, and other unethical activities.

On the flip side, so far in 2023, the hacking activities have already peaked, which is why SEC once more became immensely active.

As for the price of the Platypus USDC token is concerned, it might take longer than expected time to recover and earn the investors’ trust.

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