Hacker Breaches Penpie’s Security Protocol to Steal Roughly $27.3 Million in Assets

As several crypto and DeFi companies around the world continue to intensify security measures aiming to reduce the risk of cyberattacks, Penpie’s recent security breach may serve as added motivation for these companies. Penpie’s yield optimizer platform was a recent target of a malicious attack that saw the hacker cart away with roughly $27.3 million in assets. However, Pendle, which hosts the Penpie platform, has come out to assure their community that their funds are safe and were not affected by the hack on Penpie.

Lookonchain, a blockchain analytics company, assessed the hack procedures and reported that most of the carted assets were traded for about 11,109 Ethereums. Further empowering the trust of their community, after the incident, Pendle stated that despite the initial hack, they were able to secure about $105 million that would have been stolen from Penpie thanks to their hurried intervention. In a statement from the DeFi project, Pendle, the funds of Pendies are protected, unaffected, and the project is implementing protocols to ensure utmost security.

Explaining the breach, Pendle admitted that a special feature that gave access on Penpie for markets on Pendle to be listed without permission was maliciously exploited. This breach was deployed by increasing the value of staking balances in order to receive unauthorized benefits. However, Pendle stated that its security team quickly snuffed out the breach from escalating further.

Pursuing the case further, Penpie had mentioned its desire to forfeit any legal suit while concealing the hacker’s details if they would honor an invite for negotiation. It also added that should the hackers comply, Penpie would reward them with a part of the exploited assets.

The event has cast a shadow of uncertainty on investors’ trust as Penpie and Pendle have both experienced a dip in the value of their respective tokens. PNP, which is Penpie’s token, went down with about 33%. On the other hand, Pendle saw its token crawl down by 9%.