HomeNewsFrench Court Acquits Brothers in Platypus DeFi Hack Case

French Court Acquits Brothers in Platypus DeFi Hack Case

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  • Flash Loan Attack on Platypus: Platypus DeFi protocol suffered an $8.5 million loss due to a flash loan attack by two brothers, Mohammed M. and Benamar M., exploiting a code error.
  • Court’s Surprising Verdict: Despite admitting to the hack, the brothers were released by a French court, claiming to be “ethical hackers” and expressing a willingness to return the funds for a 10% cut.

The decentralized finance (DeFi) platform Platypus faced a significant security breach when two brothers, Mohammed M. and Benamar M., exploited a vulnerability in its protocol, resulting in an $8.5 million loss through a flash loan attack. This incident, occurring on February 16, led Platypus to halt trading services temporarily while seeking a resolution.

Breach and Investigation

The attack involved exploiting a code error, enabling the brothers to withdraw assets through an uncollateralized loan. With assistance from Binance’s security team and independent crypto investigators, the stolen funds were traced back to the perpetrators. The brothers were initially detained on February 24, pending further legal action.

Court Hearing and Defense

During an October 26 court hearing in Paris, the brothers confessed to the theft but positioned themselves as “ethical hackers.” They proposed returning the stolen funds in exchange for retaining 10% as a form of a bug bounty. This unique defense strategy led to their acquittal of all criminal charges, as the court found parallels with typical bug bounty scenarios.

Aftermath and Protocol’s Future Challenges

Despite recovering the majority of the assets, Platypus continues to grapple with security challenges. A subsequent exploit on October 12 saw another significant loss of $2.2 million, executed in three separate attacks. However, Platypus managed to reclaim 90% of these stolen assets following negotiations with the hacker.

Implications for DeFi Security

The incident raises critical questions about security in the DeFi sector and the legal nuances surrounding digital asset theft. The French court’s decision to release the brothers, considering their intent to return the funds and their self-designation as ethical hackers, sets a precedent in how DeFi exploits may be perceived and handled legally.

As the DeFi ecosystem evolves, such incidents underscore the importance of robust security measures and clear legal frameworks to address the complexities of digital asset theft and ethical hacking claims. The Platypus case will likely be referenced in future legal proceedings involving similar incidents in the DeFi space.

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Nikita Dmitrievich
Nikita Dmitrievichhttps://www.ethnews.com/
Nikita, a young and ambitious crypto investor who has been actively involved in the cryptocurrency world for the past 6 years. With a keen interest in blockchain technology, Nikita has been investing in various cryptocurrencies and has seen significant returns on his investments. He is passionate about educating others on the potential of cryptocurrencies and frequently shares his insights on social media platforms. Nikita believes that cryptocurrencies are the future of finance and is constantly researching new projects to invest in. With his dedication and knowledge, Nikita is quickly becoming a prominent figure in the crypto community. Business Email: info@ethnews.com Phone: +49 160 92211628