French police have arrested two suspects in connection with the $9.1 million Platypus exploit, and 210,000 euros worth of cryptocurrency has been seized, according to local authorities.
The investigations leading to the arrests were supported by on-chain detective ZachXBT and cryptocurrency exchange Binance, Platypus said. The decentralized protocol was compromised in three separate flash lending attacks carried out by the same exploiter on February 16.
[#Cybercriminalité]The #National Police puts an end to a major scam for $9.5 million damages from an American cryptocurrency exchange company.
Arrest and court summons of 2 people
seizure of €210,000 in cryptocurrencies#Judicial police pic.twitter.com/rKKuG95cWh— National Police (@PoliceNationale) February 24, 2023
The attacks resulted in the theft of several stablecoins and other digital assets. The first attack resulted in the theft of approximately $8.5 million in assets. Approximately 380,000 assets were mistakenly pushed to the Aave v3 contract in the second incident. As a result of the third attack, approximately $287,000 was stolen. The attack resulted in the depegging of the stablecoin Platypus USD (USP) from the US dollar.
The perpetrators used a quick loan method to explore a logical error in USP’s solvency verification mechanism within the collateral holding, Platypus recently confirmed. Stable swap operations have not been affected.
A hit-and-run attack is the same method used by Mango Market exploiter Avi Eisenberg, who claimed responsibility for manipulating the price of the MNGO coin in October 2022. After the exploit, Eisenberg said that “all our actions were legal actions.” open market, using the protocol as designed.” Eisenberg was arrested on fraud charges on December 28.
Platypus announced a plan to return funds to affected users on February 23. According to the protocol, 63% of the funds in the master fund will be returned within six months. Under the plan, re-minting frozen stablecoins could result in 78% of the funds being recovered. “If our proposal sent to Aave is approved and Tether confirms that it reissues the frozen USDT, we will be able to recover approximately 78% of user funds,” the protocol noted.
