Platypus Protocol Exploiters Arrested by French Police

With the whole event surrounding the Platypus protocol, the core team has said the hack did not prevent the daily activities of the platform.

The two suspected Platypus Protocol exploiters have been arrested by the French National Police. The police department gave the confirmation of the arrest as announced via its official Twitter handle. The authorities refused to name the suspects or unveil the charges now levied against them.

According to the police, the suspects were involved in the $9.5 million hack of the Platypus and it has been able to recover the sum of 210,000 euros (or $220,000) in cryptocurrencies. This arrest lends credence to the culminating efforts of all stakeholders in the industry that has led to the identification of the suspects.

[#Cybercriminalité]La #PoliceNationale met fin à une escroquerie d’ampleur pour un préjudice de 9,5 millions💰sur une société américaine d’échange de cryptomonnaies.
Interpellation et convocation en justice de 2 individus
👉saisie de 210 000 € en cryptomonnaies#PoliceJudiciaire pic.twitter.com/rKKuG95cWh

— Police nationale (@PoliceNationale) February 24, 2023

The Platypus protocol has particularly extended its appreciation to Binance, the world’s largest crypto trading platform, and ZachXBT, the popular crypto on-chain sleuth for helping to uncover the identity of the exploiters. Since the protocol was exploited, Platypus said it has made some additional fund recoveries.

A total of $1.5 million in USDT has been frozen by Tether Holdings while a total of 687,000 BUSD has also been recovered by the protocol. The Avalanche-based protocol also said its efforts following the hack have also led to the recovery of $2.4 million in USDC.

Platypus will not be the first protocol that will be hacked over the past few months, but it remains the one whose fund recovery in the days following the hack has been most swift.

Platypus was branded as a pioneer in combining a stableswap and stablecoin, masterfully utilizing its underlying assets to bring next-level capital efficiency. It operates using the Platypus USD (USP) which has lost its peg following the hack event. At the time of writing, USP is changing hands at $0.322812, a situation that has largely unsettled the Platypus community.

Platypus Protocol Reassurances

With the whole event surrounding the Platypus protocol, the core team has said the hack did not prevent the daily activities of the platform.

“We want to reassure everyone that stableswap’s operation has not been and will not be impacted. Our investigation revealed that the bug responsible for the attack was a logic error in the USP solvency check mechanism within the collateral-holding contract,” the protocol said in a statement shared last week.

Exploits in the DeFi world are not an uncommon event as cybercriminals have continued to devise new ways to wreak havoc. One of the most controversial hacks thus far is that of the Mango Markets whose suspect has been arrested and is under trial by the US Securities and Exchange Commission (SEC).

The attack vector for both Mango Markets and Platypus was a flash loan vulnerability. While this flash loan was created as an innovative market trading approach, its usage over the past years has been exploitative.

At the moment, Platypus has promised to pay comprehensive compensation to all of the affected users of its platform.

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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.