Platypus Has Suffered A Flash Loan Attack Worth $8.5 Million

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Law enforcement has arrested a suspect over the $8.5 million attack on Platypus, a decentralized finance protocol- which saw close to $8.5 million being drained from the protocol over a short period of time.

CertiK, the Blockchain security firm, was the first to report that the flash loan attacked on the stable swap platform based on Avalanche through a tweet made on the 16th of February, alongside the contact address of the alleged attacker. According to the security firm, around $8.5 million has already been moved through the spaces. As a result, the stablecoin became de-pegged from the Us Dollar, dropping around 52.2% to $0.478. 

Platypus Has Gone Through A Hack Of $8.5 Million

Platypus then confirmed the attack themselves, while a moderator of the Telegram group informed the members that the company had stopped trading. The cryptocurrency stablecoin also confirmed a loss of 8.5 million from the central pool and commented that the deposits had been covered at 85%.

But fortunately, none of the other pools had been affected by this hack. The company then contacted the hacker in order to negotiate a bounty for the funds’ return. In the meantime, Tether Holdings went ahead and froze the entire USDT that had been stolen, with Platypus reaching out to Binance and Circle to free the other tokens that had been stolen. 

An on-chain crypto sleuth, ZachXBT, tweeted out to a now-deleted Twitter account, where they alleged that the address that had been identified by Platypus was linked to this now-defunct Twitter account. The sleuth mentioned that they had been tracing the addresses back to this account, and the company wanted to get in touch with the hacker to negotiate the return of the funds before law enforcement got involved with this.