DeFi Protocol Loses $27M in Major Security Breach

Penpie, a decentralized finance (DeFi) platform, suffered a major security breach on Wednesday, resulting in the theft of approximately $27 million in cryptocurrency.

The stolen assets included staked ETH and wrapped USDC.

Following the attack, Penpie, which operates on the Pendle network, has acknowledged the incident and expressed a willingness to negotiate a bounty for the return of the stolen funds. Pendle has confirmed that while they also experienced a security issue, investor assets on their platform remain secure.

The hack prompted Penpie to suspend all deposits and withdrawals. Despite identifying the source of the breach, Penpie’s token, PNP, saw a drastic 40% decline in value over the past day, with trading volume surging by 1300% to $458,000. The token is currently valued at around $0.987.

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Pendle’s token also took a hit, falling 11% to $2.78, with a 25% drop in its 24-hour trading volume to $55.3 million.

The breach involved the theft of assets including Restaked Swell Ethereum, agETH, wrapped stETH, and Ethena Staked USDe.

Penpie is now in discussions with the hacker, offering a potential bounty for the return of the funds. The protocol hopes to resolve the situation positively, with assurances of confidentiality and legal immunity for the hacker in exchange for a portion of the funds.