In a recent incident, the Platypus altcoin project on the Avalanche chain fell victim to an attack. This attack caused losses exceeding $2 million. Additionally, the loss of value in the project’s PTP altcoin attracted attention. Here are the details…
Hack alarm in altcoin project
According to PeckShield tracking data, the last attack occurred today, October 12, 2023. The attack was announced less than an hour ago. As Kriptokoin.com reported, Platypus reported another security breach on July 12. This left the project in a vulnerable position. The vulnerability in question was related to a weakness in the altcoin swap mechanism through CoverageAratio, which does not account for price differences between pools. This oversight creates an opportunity for users to arbitrage by depositing USDC and withdrawing more USDT. In this example, arbitrageurs managed to accumulate approximately 50,000 USDC by taking advantage of this discrepancy.
Update: total loss >$2m pic.twitter.com/JnJQjn4Aik
— PeckShieldAlert (@PeckShieldAlert) October 12, 2023
Platypus seems to be accustomed to such violations lately. The July exploit mentioned above was not the first example. Because, just eight months ago, on February 17, 2023, Platypus suffered a devastating flash loan attack, resulting in losses of approximately $8.5 million. This previous incident raised concerns about the security of the platform and its resistance to malicious actors. Meanwhile, after the hack announcement, the loss of value in the PTP altcoin of the Platypus ecosystem attracted attention. PTP fell from $0.0139 to $0.0130, a decline of 8 percent. You can see the decline in price in the chart below:
Statement from Platypus
Following the latest hack announcements, a statement came from Platypus. In the statement made on the project’s official Twitter (X) account, there was a suspension statement. The project stated that they came to this decision due to suspicious activities in the protocol. He announced that he would make more detailed explanations in the future. In the statement on Twitter, the following statements were included:
Due to suspicious activity in our protocol, we took proactive action and temporarily suspended all pools. Further updates will be communicated to the community in a timely manner. Thank you for your patience and understanding during this time.
https://twitter.com/Platypusdefi/status/1712365385100689584
In an environment where security is paramount, the cryptocurrency community remains vigilant. It also demands that projects take necessary steps to protect users’ assets. The effects of these attacks extend beyond immediate losses, as they can erode trust and confidence in the broader DeFi space. Investors and stakeholders are now watching with curiosity to see how the Platypus project will respond to these security breaches. A transparent and effective recovery strategy is essential to ensure the long-term sustainability of the platform.
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