An EU financial markets authority has alerted investors to the severe risks of DeFi amid a new flash loan exploit on the Avalanche network.
Over $2 million has been drained in a flash loan attack targeting Avalanche-based protocol Platypus Finance. PerkShield, a famous security firm, reported the security breach.
The DeFi project immediately shut down all of its pools to deal with the problem.
New DeFi Project Under Flash Loan Attack
PerkShield initially discovered that Platypus was likely under a flash loan attack that targeted the AVAX-sAVAX pool. However, at the time of writing, there hasn’t been any official confirmation regarding the attack method.
Platypus said that the team noticed some suspicious activities in the system and would keep the community informed about any updates.
“Due to suspicious activities in our protocol, we have taken the proactive measure of temporarily suspending all pools. Further updates will be…
