Stablecoin exchange protocol Platypus suffers flash loan attack, loses $8.5 million

The amount hacked from Platypus is the highest so far in 2023, with the total DeFi hack surpassing eight figures, exceeding $25 million.

Blockchain security firm CertiK tweeted on 2/17 morning stating that the Avalanche blockchain stablecoin exchange protocol Platypus suffered a flash loan attack and lost around $8.5 million.

Platypus later announced that hackers exploited a logic flaw in its stablecoin Platypus USD USP collateral contract, making off with approximately $8.5 million.

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Currently, users have only 35% of their deposits left on average. Platypus has reached out to freeze the stolen funds in various sectors, including:

• Binance

• Circle

• Tether

Currently, USDT has been frozen, and Platypus is still discussing user compensation plans.

Online Detective Traces Hacker

Renowned online detective ZachXBT seems to have identified the hacker, but after ZachXBT's private message, the hacker immediately shut down all social media accounts:

• Twitter: @retlqw

• IG: walter @retlqw

• ENS: retlqw.eth

ZachXBT urges the hacker to negotiate repayment with Platypus before law enforcement gets involved.

Hi @retlqw since you deactivated your account after I messaged you.

I've traced addresses back to your account from the @Platypusdefi exploit and I am in touch with their team and exchanges.

We’d like to negotiate returning of the funds before we engage with law enforcement. pic.twitter.com/oJdAc9IIkD

— ZachXBT (@zachxbt) February 17, 2023

Highest Hacked Amount in 2023

According to statistics, Platypus has been the victim of the highest amount of theft in 2023 so far, with the total amount hacked this year exceeding eight figures, approaching $30 million.

The stablecoin Platypus USD USP has also suffered as a result, with CoinGecko data showing USP has dropped to $0.477.