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The crypto sector has witnessed a flurry of security breach incidents in recent months, raising concerns among digital currency market enthusiasts. In a recent development, the decentralized finance protocol Platypus Finance finds itself at the heart of a major security breach, losing around $2 million.
The attack on the Avalanche-based project occurred in the wake of a similar incident earlier this year. Notably, blockchain security firm PeckShield has signaled that the AVAX-sAVAX liquidity pool was the target, with flash loans believed to be the method of attack.
Platypus Finance Loses $2 Million In Security Breach
Platypus Finance, a decentralized finance (DeFi) protocol operating on the Avalanche network, recently made headlines due to a crypto scam incident. The platform has fallen victim to a security breach, resulting in the loss of about $2 million.
Security firm PeckShield shed light on the incident while confirming this breach and highlighting a grim pattern of vulnerability haunting Platypus Finance. Notably, the latest incident targeting Platypus Finance showcases the perilous side of flash loans, a pivotal mechanism in decentralized finance.
Meanwhile, the flash loans aim to empower users to access funds without collateral, provided they repay the loan within the same transaction block. Unfortunately, these loans have been manipulated by attackers who exploit vulnerabilities within DeFi protocols, bending market conditions to their favor and profiting from the ensuing chaos, all within the tight confines of a single transaction block.
Notably, in response to the recent incident, Platypus Finance has suspended all pools, echoing a similar move made after the previous breach. The company said on its X platform that they are halting their services due to “suspicious activities” on their protocol.
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Previous Attacks On The Platform
The latest breach is not Platypus Finance’s first encounter with hackers. Earlier in the year, they suffered a similar fate when an attack drained the project of $8.5 million. This time, the AVAX-sAVAX liquidity pool bore the brunt of the assault.
The swift recurrence of these incidents raises concerns about the platform’s security measures and the vigilance required in the ever-evolving DeFi landscape. Meanwhile, the crypto sector has faced a flurry of cyber threats this year, as hackers continue to exploit vulnerabilities.
Meanwhile, CertiK reported that the aggregated losses in September amounted to approximately $332 million, due to exploits, hacks, and crypto scams. The report showed that exit scams constituted around $1.9 million, flash loans around $0.4 million, and exploits accounted for approximately $329.8 million of the total losses.
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