French police have arrested two suspects in connection with the Platypus exploit for 9.1 million dollars and have seized cryptocurrency worth 210,000 eurosaccording to local authorities.
The investigations that led to the arrests were supported by on-chain detective ZachXBT and cryptocurrency exchange Binance.said Platypus. The decentralized protocol was compromised in three different flash lending attacks carried out by the same exploiter on February 16.
[#Cybercriminalité]The #PoliceNationale I ended an escroquerie d’ampleur for a loss of 9.5 million on a société américaine d’échange de cryptomonnaies.
Interpellation et convocation in justice of 2 individuals
Saisie of €210,000 in cryptomonnaies#PoliceJudiciaire pic.twitter.com/rKKuG95cWh— Police nationale (@PoliceNationale) February 24, 2023
[#Ciberdelincuencia] #PoliceNationale put an end to a large-scale scam that lost $9.5 million to an American cryptocurrency exchange.
Arrest and judicial summons of 2 individuals.
Seizure of 210,000 euros in cryptocurrencies #PoliceJudiciaire
The attacks resulted in the theft of several stablecoins and other digital assets.. The first attack led to the theft of approximately $8.5 million in assets. Approximately 380,000 assets were mistakenly sent 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 decoupling of the stablecoin Platypus USD (USP) from the US dollar..
The perpetrators used a flash loan method to explore a logical error in USP’s credit-check mechanism within the collateral holding, as recently confirmed by Platypus. Stable swap operations have not been affected.
A flash 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 of our trades were open market legal actions, using the protocol as designed.” Eisenberg was arrested in Puerto Rico 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. According to the plan, the return of frozen stablecoins could mean the recovery of 78% of the funds. “If our proposal submitted to Aave is approved and Tether confirms the reminting of the frozen USDT, we will be able to recover approximately 78% of user funds”noted the protocol.
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