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.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.