DeFi Protocol Penpie Loses $27 Million in Major Security Breach

TL;DR
- The DeFi protocol Penpie suffered a security breach, resulting in the theft of approximately $27 million in various crypto assets, including $ETH and wrapped USDC.
- Following the exploit, Penpie's token dropped 40%, while Pendle's token fell nearly 8%, highlighting ongoing vulnerabilities in DeFi protocols.

Decentralized finance (DeFi) protocol Penpie, operating on the tokenized yield platform Pendle, recently experienced a significant security breach. An attacker exploited the protocol, siphoning off around $27 million in crypto assets, including $ETH, Ethena's sUSDE, and wrapped USDC. This incident has raised serious concerns within the crypto community regarding the security of DeFi protocols.

The attacker drained assets from Penpie and converted the stolen funds into $ETH using the Li.fi platform. The stolen funds were transferred to a new wallet address, which had been funded with 10 $ETH through the crypto mixer Tornado Cash just hours before the attack. In response to the breach, Pendle has paused all contracts to investigate the incident and ensure user funds remain secure.

In the aftermath, Penpie's native token (PNP) plummeted by 40%, reflecting the market's reaction to the exploit. Pendle's token (PENDLE) also faced a decline of nearly 8%, more pronounced than losses experienced by major cryptocurrencies like $BTC and $ETH, which saw declines of 1% to 3%. This incident underscores the ongoing risks associated with DeFi protocols, as users reportedly lost around $2 billion to hacks, scams, and exploits throughout 2023.

What measures do you think should be taken to improve the security of DeFi protocols?

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