Platypus DeFi faced a flash loan attack according to CertiK

Platypus Finance is a decentralized finance (DeFi) platform. She was the victim of a flash loan exploit attack. The hack caused the price of the protocol’s stablecoin, the Platypus USD ($USP) to plummet as it lost its peg to the dollar. It dropped to 48 cents from $1. On the other hand, the $PTP, native token of Platypus fell by 29%.

Playtipus announcing on its Twitter account that its protocol has been hacked.

What is this attack?

Platypus DeFi is a stable exchange platform based on Avalanche and CertiK a Blockchain security company. According to information reported by Cointelegraph, CertiK reported a flash loan attack on Platypus through a Tweet. Platypus confirmed the attack in another tweet:

Dear community,

We regret to inform you that our protocol was hacked recently and the attacker took advantage of a flaw in our USP credit check mechanism. They used a flash loan to exploit a logic error in the USP solvency check mechanism in the contract holding the collateral.

Platypus

It appears that the alleged striker first took out a $44m flash loan from Aave V3. Then he himself mined about 41 million US Platypus tokens. Finally, he cashed in some $8.5 million from other stablecoins and repaid the flash loan. All of these actions appear to have taken place in the same block of transactions.

What consequences for Platypus after this hack?

As CertiK predicted, the nearly $8.5 million theft was confirmed by Platypus. As a result of this hack, the stablecoin Platypus USD lost its peg to the dollar. Indeed, it is down 52.2% to $0.478 at the moment.

The company offered a reward to the cybercriminal against reimbursement of the funds moved. Meanwhile, Tether Holdings froze the stolen USDT. Platypus now expects Circle and Binance to freeze the other stolen tokens.

This is really not the time for a crypto business to get hacked. Especially when this company manages stablecoins. Indeed, the SEC, policeman of the American stock market, has given itself the mission of putting an end to all crypto companies. Will Platypus be its next target? And above all, will its Platypus USD survive this ordeal?

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