Hackers hit Platypus Finance, a platform for decentralised finance (DeFi), with a major flash-loan attack, reports revealed.
Blockchain cybersecurity company CertiK wrote in the report that the thefts cost the crypto protocol roughly $8.5 million.
The hack also cost its native token, Platypus USD (USP), its peg to the US dollar, sending the coin plummeting from $1 USD to 48 cents.
The platform automates stablecoin swaps for crypto traders and hosts $59 million USD in virtual assets. At its peak, the platform held up to $1.2 billion in March last year, according to data.
Flash loans allow traders to profit from arbitrages, but conversely invite exploitative users to drain digital assets on DeFi platforms.
The news comes after CertiK reported in early January that 2023 would continue trends from last year, where cybercrime would remain steady in frequency and number. The report noted that 2022 saw nearly $3.7 billion hacked from victims, up from $3.2 billion in 2021.
