Platypus Finance creates compensation portal for users following $9.1M exploit

Published at: March 1, 2023

Decentralized finance (DeFi) protocol Platypus Finance has created a portal that enables users to view how much the platform owes them following the recent $9.1 million exploit that the platform suffered.

On Feb. 16, the DeFi protocol suffered a flash loan attack, pushing the Platypus USD stablecoin to break its peg with the U.S. dollar. At the time, Platypus confirmed a loss of around $8.5 million from its main pool. The firm also said that they have contacted the hacker to negotiate a bounty. A post-mortem report from Platypus auditor Omniscia said that the attack was possible because of code that was in the wrong order.

Following the hack, the team worked on a compensation plan for users' funds. On Feb. 23, the team announced that they are seeking to return around 78% of the main pool funds by reminting frozen stablecoins. By then, the team also confirmed that apart from the $8.5 million loss, a second and a third incident led to another $667,000 in losses, making the total losses around $9.1 million.

According to the latest update from the protocol, they launched a page that lets viewers check how much compensation they can get from the platform. the page contains several sections that allow users to better understand how much they are owed after the exploit. This includes an overview, a pre-attack net value and post-attack adjustments.

We have just released a page where you can check the value of your loss and expected compensation for our first claim. https://t.co/UTT054VpEk Need a walk-through? We have prepared a medium for you: https://t.co/ZAjjogCCdX pic.twitter.com/mhdagdjmw3

— Platypus (++) (@Platypusdefi) February 28, 2023

The team also highlighted that if anyone finds errors within the calculations, they could submit a form along with supporting evidence to back their claim before Mar. 3, 11:59 PM (UTC). The DeFi protocol pointed out that once all feedback is received, they will finalize the calculations. After that, the first compensation will be available for users to claim in March. 

Related: DeFi ‘fragility’ causes and cures explored in highly technical Bank of Canada study

The team also said that refunds are currently their top priority and that they're working to recover any remaining funds.

Meanwhile, French police arrested two suspects related to the hack and seized around $222,000 worth of crypto assets on Feb. 25. According to Platypus, the arrests were supported by crypto sleuth ZachXBT and the Binance exchange.

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Defi
Hacks
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