Platypus Finance Hacked for $2M; Third Time This Year

Platypus Finance, an DeFi Automated Market Maker (AMM) protocol operating on the Avalanche blockchain, has today recently fallen victim to another flash loan exploit, as per reports from Peckshield Alerts.

According to Peckshield, the breach has incurred a financial loss of approximately $2 million.

Platypus Finance taken action by temporarily suspending all its liquidity pools, prioritising user protection and safeguarding against further losses.

This event marks the third hack within a relatively short span.

Platypus Finance was previously compromised on February 16, 2023, resulting in a loss of around $8.5 million in stablecoin collateral.

The breach was attributed to a logic error exploit within the protocol’s solvency check mechanism.

Much like in this instance, this allowed the attacker to borrow against flash-loaned collateral and subsequently withdraw it without fulfilling the associated debt.

Observers on X have found a Binance-tagged transaction which funded the hacker’s wallet with 25 Avax.

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