Key takeaways:
- The French authorities has detained two suspects in connection with the Platypus exploit and confiscated cryptocurrency worth 210,000 euros.
- The first attack resulted in the theft of property valued about $8.5 million.
It has been reported that 210,000 euros ($222,000) worth of cryptocurrency has been seized by French police in connection with the $9.1 million Platypus exploit, and two suspects have been detained by them, according to the local officials.
According to the report, the investigation that led to the charges being brought against Binance and on-chain sleuth ZachXBT was aided by both Binance and ZachXBT . There were three separate attacks carried out by the same exploiter on February 16 in order to compromise a decentralized protocol for managing flash loans.
Several stablecoins and other digital assets were stolen as a consequence of the attacks. The first attack resulted in the theft of property valued about $8.5 million. In the second instance, assets worth roughly $380,000 were unintentionally transferred to the Aave v3 contract. About $287,000 was taken during the third assault. As a result of the attack, the Platypus USD (USP) stablecoin lost its peg to the US currency.
Platypus recently verified the use of a flash loan method by the perpetrators to look into a logical inconsistency in the USP solvency review mechanism within the collateral-holding process. No changes have been made to the stable swap procedures.
On February 23, Platypus made a plan to reimburse impacted users for their money. According to the protocol, 63% of the money from the primary pool will be returned after six months. According to the proposal, reminting frozen stablecoins could be used to recover 78% of the money. The procedure made the following notations:
“If our proposal submitted to Aave is approved and Tether confirms reminting the frozen USDT, we will be able to recover approximately 78% of user’s funds,”
A flash attack is the same method used by Mango Markets exploiter Avi Eisenberg in October 2022 when he claimed responsibility for manipulating the price of Mango (MNGO) by using a flash attack. When asked about the exploit, Eisenberg responded, “All of our actions were legal open market actions, using the protocol as designed.” In Puerto Rico, Eisenberg was taken into custody on December 28 on suspicion of theft.
