Platypus Finance announces 90% of assets lost in exploit recovered

Platypus Finance, a decentralised finance (DeFi) protocol on the Avalanche blockchain, has announced the recovery of 90% of assets stolen after a recent security breach.

Platypus Finance recovers 90% of stolen funds

An October 17 statement the protocol’s team posted on X noted that after this leaves its net loss from the flash loan attacks at 18,000 Avalanche (AVAX) tokens. At the current AVAX price of $9.06, that would be about $163,080.

Platypus Finance announced that the hacker responsible for the attack on the automated market maker last week has voluntarily agreed to return the looted funds. As a result, the Platypus Finance team will not pursue legal action against them.

Part of the protocol’s statement read:

“Along with the recovery on Oct 12, over 90% of the funds have been recovered. The net loss has been minimized to approximately 18k AVAX. We will release further information on withdrawal arrangements as we progress.”

The protocol suffered a security breach on October 12, with flash loan attacks on the sAVAX-AVAX pool resulting in the theft of over 2.2 million. Approximately 50k sAVAX and 7k AVAX were reportedly recovered from one of the hackers.

This month’s attacks weren’t the first to hit the platform. Other incidents were suffered in July and in February. After the latest attack, the DeFi protocol’s team halted all withdrawals.

Today’s announcement saw the price of the native token PTP jump more than 10% to above $0.009. But while the gains were notable, the token remained more than 35% down in the past week and 99% from the all-time high of $16.69 reached in January 2022.