Platypus Finance Unveils Recovery Plan For Users Affected In $9.1m Hack

CryptoMode MonoX Exploited 30 Million Dookey Dash Platypus DeFi

Decentralized finance (DeFi) protocol Platypus Finance has successfully launched a portal that facilitates checking outstanding debts following a recent attack that saw $9.1 million of funds lost. 

The DeFi protocol experienced a flash loan attack on February 16, causing the Platypus USD (USP) stablecoin to lose its peg with the US dollar. As a result, the platform lost approximately $8.5 million during the attack from its primary pool. 

The team reported contacting the hacker, hoping to negotiate a bounty. Moreover, a post-mortem report by Platypus auditor Omniscia established that the hack was possible due to the code being incorrectly ordered.

Following the hack, the team devised a compensation plan for users. On February 23, they announced that they aim to remint frozen stablecoins and restore about 78% of the funds in the primary pool. That news was met with some criticism and skepticism. Even so, it was the only viable path forward. 

Additionally, the team confirmed two more incidents that led to $667,000 being exploited, bringing total losses to $9.1 million. Overall, many things went wrong for the DeFi protocol in quick succession. However, there is a light at the end of the long tunnel.

Earlier this week, the protocol launched a page enabling users to check the compensation owed to them. The page contains different segments to help users understand their owed amount. That includes an overview, pre-attack net value, and post-attack adjustments. Users who identify any calculation errors can submit a form and supporting evidence before 11:59 pm UTC on March 3. 

After receiving all feedback, the DeFi protocol stated that they would finalize the calculations. Users can claim the first compensation in March after the calculations are complete. The team is committed to prioritizing refunds and is working to recover any outstanding funds. There is much work to do, but affected users can be cautiously optimistic.

Meanwhile, on February 25, the French police apprehended two suspects concerning the hack and confiscated approximately $222,000 worth of crypto assets. According to Platypus, the arrests were supported by crypto investigator ZachXBT and the Binance exchange.

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