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Crime and Investigations

French Police Arrest Two in $9.1M Platypus Crypto Hack

French Police Arrest Two in $9.1M Platypus Crypto Hack

According to local authorities, two individuals were apprehended by French police in connection with the Platypus exploit, which resulted in a loss of $9.1 million.

Furthermore, authorities have confiscated 210,000 euros ($222,000) worth of cryptocurrency.

The investigations that led to the arrests were aided by on-chain detective ZachXBT and the cryptocurrency exchange Binance, Platypus disclosed. On Feb. 16, the same attacker exploited the decentralized protocol in three flash loan attacks.

The attacks resulted in the loss of various stablecoins and digital assets.

The first attack resulted in the loss of around $8.5 million in assets. In the second attack, roughly $380,000 in assets were mistakenly transferred to the Aave v3 contract. In the third attack, about $287,000 was stolen, resulting in the Platypus USD (USP) stablecoin losing its peg to the US dollar.

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Platypus recently confirmed that the perpetrators employed a flash loan technique to exploit a logic flaw in the USP solvency check mechanism within the collateral-holding system. Stable swap operations have not been affected.

On Feb. 23, Platypus announced a plan to return funds to impacted users. The protocol intends to reimburse 63% of the primary pool funds within six months. According to the plan, reminting frozen stablecoins could recover 78% of the funds. The protocol added, “If our proposal submitted to Aave is approved and Tether confirms reminting the frozen USDT, we will recover approximately 78% of users’ funds.

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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