April 12, 2024

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Platypus is AMM protocol on AAVE crypto lender network. This protocol was attacked by hackers yesterday. As a result of the hack, the platform ended up losing around $8.5 million in cryptocurrency reserves. The report of the attack was put together by Cyber security firm called BlockSec.

However, it has been reported recently that the platform was able to regain $2.4 million worth of USDC stablecoin by getting some assistance from BlockSec personnel. The report created by MetaSleuth has revealed that the hackers were able to cash in only $270K. MetaSleuth is a data visualization tool developed by BlockSec.

There are many cases of exploits and hacks taking place in DeFi. In most of these instances, the DeFi protocol ends up suffering from massive losses or going under. However, Platypus took prompt action to regain control of their business and was able to recover a considerable amount of stolen funds.

The firm has reported that around $8.5 million of stolen funds are preserved in a contract where the hackers transferred them. Meanwhile, the remaining $380K was accidentally transferred to AAVE protocol while hackers were trying to capture it during a second hack attempt.

BlockSec is Using the Callback Option to Recover Funds

Yajin Zhou, the head of BlockSec, told the media that recovering $2 million in funds was part of the plan to reroute the remaining stolen cryptocurrencies under the control of hackers. He confirmed that the firm made use of Proof of Concept and ensured that $8 million siphoned goods were stranded on account of a lack of transfer function in hacker wallets.

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The firm reported that hackers exploited the flash load calls back interface. BlockSec decided to invoke the Callback functions first before the hackers could take advantage. Therefore, the DeFi protocol was able to recover the USDC amount and withdraw them before hackers got a chance to upgrade their proxy for new implementation.

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