Platypus DeFi Suffers Flash Loan Attack and Loses $8.5 Million

Looks like hacking the Decentralized Finance (DeFi) protocol becomes very common these days. Hackers and exploiters are busy exploiting any vulnerability of the protocol and stealing crypto assets. Avalanche-based DeFi platform Platypus lost almost $8.5 million worth of crypto assets due to a flash loan attack.

Blockchain security firm CertiK talked about this attack in a tweet and also mentioned the attacker's address. Because of this incident, the Platypus USD stablecoin price crashed to $0.478, losing 52.2% value. It is sad to see any exploit and hack in the crypto industry.

Decentralized Finance (DeFi) platform Platypus confirmed this flash loan attack and loss of around $8.5 million from the main pool. It is stated that other pools remained unaffected. And they are doing more investigation to figure out how it happened and what they can do to minimize the loss.

They contacted Tether, Circle, and Binance to freeze the stolen funds so that the attacker cannot move them easily. Tether already froze the stolen USDT. They take this matter seriously and take every possible action they can to resolve this. They contacted the attacker to offer a bounty with a view to recovering the stolen funds.

There is no news of recovering any stolen funds so far, but Platypus is doing its best to recover the funds and minimize the loss. In a tweet, they said that they will inform the community as they make progress.

There is no question that Decentralized Finance (DeFi) has the potential to disrupt the traditional banking system. People can provide liquidity, swap crypto, borrow and lend crypto assets, and do different things that they usually do in banks.

Hacking and exploiting the DeFi protocol is the risk that you have to consider when you get involved in DeFi. The path to disrupting any existing system is not easy. There are trials and errors. The DeFi protocol will be more robust and developed over time.

Bad actors make the crypto look bad and create FUD to discourage people from using this technology. Despite what's going on in the crypto space, there are more positive things than negative incidents. The future is bright, so explore, understand, and embrace the latest technology and be a part of something bigger.

So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.

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