French Court Clears Hackers in Platypus Stablecoin Incident

In a notable verdict, a French court found two hackers not guilty of charges stemming from the Platypus stablecoin attack that took place on the Avalanche network, where they were accused of diverting $8.5 million. The defendants maintained that they acted as 'ethical hackers' with the aim of unearthing flaws and returning the misappropriated funds afterward.

In February, Platypus USP The stablecoin platform faced a severe setback after suffering from a flash loan attack, which led to an unauthorized extraction of around $8.5 million from one of its liquidity pools.

Mohammed M., one of the accused, portrayed himself as an 'ethical hacker’, asserting that his intentions were honorable. His objective was to identify security weaknesses and later return the stolen assets, possibly earning some form of reward from the company for revealing the vulnerability.

🚨 French Hackers Behind Platypus Finance Incident Celebrate Their Freedom pic.twitter.com/lYVnfLWmfn

— TWP Finance (@TWPFinance) December 4, 2023

How Binance Played a Role in the Arrest of the Platypus Hackers

The investigation picked up steam thanks to a lead provided by the cryptocurrency exchange Binance . This information enabled law enforcement to trace the illicit financial transactions and eventually capture Mohammed M. and his brother, Benamar M., in February.

During the court proceedings, Mohammed M., a self-taught tech enthusiast, claimed he stumbled upon the security gap and exploited it to highlight the vulnerabilities in the system. His brother faced charges linked to handling stolen goods. Nevertheless, both were ultimately acquitted and walked away free.

This case underscores the intrinsic dangers present in the world of decentralized finance (DeFi), where automated systems and smart contracts can be vulnerable to malicious activities. The outcome of this trial raises pressing questions regarding the definition of ethical hacking and its parameters amidst the rapidly evolving cryptocurrency landscape. DeFi , please remember that the details on this page are not meant to serve as legal, tax, investment, financial, or any other type of advice. Investing comes with risks, so it’s crucial to only invest what you can afford to lose and consult with a financial expert if uncertain. For more insights, consider reviewing the terms and conditions as well as the support resources made available by the issuer or advertiser. MetaversePost strives for accurate and unbiased reporting, however, market conditions can change without prior notice.