Penpie Details

    Organization Logo

    Penpie

    employees • Financial Services

    https://blog.penpiexyz.io/
    United States

    Industry

    Financial Services

    Security Incidents

    1

    The Penpie Protocol is a decentralized finance (DeFi) protocol designed to facilitate various financial services on the blockchain. Its primary purpose is to enable users to engage in activities such as staking, liquidity mining, and decentralized lending and borrowing, all while maintaining a high level of security and efficiency through smart contracts.

    The protocol was developed in response to the growing demand for trustless financial solutions and has integrated various innovative technologies to ensure scalability and user-friendly interactions. It provides tools that empower users to m...
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    Security Incidents

    Penpie Breach of Sep 2024
    Severity Score
    Significant to High

    Type

    Zero-Day Exploit

    Summary

    Penpie, a protocol built on the Pendle platform, experienced a significant security breach on September 3, 2024. The hacker exploited a vulnerability in Penpie’s reward distribution mechanism, deploying a malicious smart contract that inflated the attacker’s staking balance. This manipulation enabled the hacker to claim a larger share of rewards, resulting in the theft of approximately $27 million in cryptocurrency.

    In response to the breach, the Penpie team suspended all deposits and withdrawals to contain the damage and initiated complaints with the Singapore police and FBI. They also exten...
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    Severity

    The recent Penpie DeFi hack on September 3, 2024, led to the loss of approximately $27 million worth of cryptocurrency after an attacker exploited a vulnerability in the reward distribution mechanism. This exploit allowed the malicious actor to inflate their staking balance and drain significant funds. As a result, the Penpie protocol had to halt all deposits and withdrawals to prevent further damage, and law enforcement agencies such as the Singapore police and FBI were involved.

    The funds stolen were partially laundered through the crypto mixer Tornado Cash, indicating a high level of sophi...
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    Impact

    The Penpie DeFi hack on September 3, 2024, was a sophisticated exploitation of a vulnerability in the protocol's reward distribution mechanism. This breach resulted in the theft of approximately $27 million worth of cryptocurrency assets. The attacker utilized a malicious smart contract to inflate their staking balance, allowing them to siphon off significant amounts of the protocol's funds.

    This incident led to a suspension of all deposits and withdrawals, effectively taking the service offline to prevent further losses. While there is no indication that customer data was directly exposed, t...
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