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 Penpie Exploit
The stolen funds included Ether (ETH) and stablecoins like wrapped USDC and sUSDE, according to EmberCN. 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 also took action, pausing all contracts on the platform to safeguard approximately $105 million that could have been at risk. Penpie reached out to the hacker, offering to negotiate the return of the stolen funds in exchange for no legal action.
Aftermath and Ongoing Developments
As of the latest updates, Penpie’s stolen funds have been partially transferred to Tornado Cash, making recovery efforts more challenging. Penpie has reportedly repositioned their platform’s front-end and is actively working to ensure that users can securely withdraw their remaining funds.
This incident highlights the importance of robust security measures in the decentralized finance space. The question of recovering the stolen funds remains open, and the teams at Penpie and Pendle continue their efforts to protect user security.
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