On September 3, the decentralized finance (DeFi) protocol Penpie, built on Pendle, was hacked, resulting in the loss of $27 million in various cryptocurrencies.
The Hack and Losses
According to EmberCN, the stolen funds included Ether (ETH) and stablecoins like wrapped USDC and sUSDE. The hacker reportedly exploited a vulnerability in Penpie's security, converting most of the stolen assets into ETH and then transferring them to a new Ethereum address, making it difficult to trace.
Response from Penpie and Pendle
Penpie confirmed the security breach in an X post approximately an hour after the hack began. The protocol immediately paused all deposits and withdrawals to prevent further losses. Pendle, the platform on which Penpie is built, also took precautionary measures by pausing all contracts on Pendle to safeguard approximately $105 million that could have been at risk.
Penpie's Appeal to the Hacker
Penpie reached out to the hacker with an offer to negotiate a bounty for the safe return of the stolen funds, emphasizing that they would not pursue legal action if the funds were returned. They also offered the hacker an opportunity to transition into a white-hat role, where their skills would be recognized and rewarded.
As of the latest updates, part of Penpie’s stolen funds have been transferred to Tornado Cash, making recovery efforts more challenging. Penpie is actively working on securing the platform and ensuring user safety.
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