90% of the funds stolen in a security breach last week have been recovered, according to the decentralized finance (DeFi) protocol Platypus Finance.
The protocol’s net loss, as stated in the release from October 17, was restricted to 18,000 AVAX (AVAX $9.13), worth $167,400 at the time of publication.
Platypus Finance stated it “will guarantee that no legal action will be pursued” as the hacker voluntarily returned the money. Additionally, it made a suggestion that withdrawal data pertaining to users’ assets would soon be posted.
Three independent flash loan assaults on the automated market maker using the Avalanche blockchain occurred on October 12 and cost the protocol $2.23 million.
The idea obtained $3.3 million in investment in 2021, with the help of the now-defunct cryptocurrency hedge company Three Arrows Capital. After the most recent incident, Platypus stopped all liquidity pools and is performing a security audit.
In a flash loan attack, a hacker takes advantage of a flaw that enables them to instantly borrow cryptocurrency without offering the required security for the transaction.
The hacker then removes the lent assets from the protocol, leaving a bad debt that the users or protocol treasury must pay. This was the third attack on Platypus this year; the first, in July, involved a flash loan attack that cost $157,000, and the second, also a flash loan attack that exploited the DeFi protocol for $8.5 million.
After the event in February, Platypus stated in its recovery plan that it would refund at least 63% of the users’ lost funds.
