French Court Allows Hackers to Walk Free After Stealing $8.5 Million from DeFi Protocol
In a surprising decision, a French court has allowed two brothers who stole $8.5 million from the decentralized finance (DeFi) protocol Platypus to go free without facing any consequences. The hackers executed a flash loan attack on Feb. 16, exploiting a code error to drain and move the funds. One of the brothers, Mohammed M., was identified as the main culprit. However, during a court hearing on Oct. 26, the duo claimed to be “ethical hackers” and expressed their intention to return the stolen funds in exchange for a 10% share. This led to the court clearing them of all criminal charges, considering their actions similar to a bug bounty attempt.
Platypus Faces Additional Losses in Flash Loan Exploit
During the legal proceedings related to the hack, Platypus experienced another flash loan exploit resulting in a loss of $2.2 million. The protocol temporarily suspended all pools due to suspicious activities and is working on resolving the issue.
Investigation Reveals Three-Part Hack and Recovery Efforts
CertiK, a blockchain security firm, conducted an investigation into the Oct. 12 hack on Platypus. The findings revealed that the attack occurred in three parts, with each draining various cryptocurrencies worth millions of dollars. However, on Oct. 17, Platypus managed to recover 90% of the stolen funds through an agreement with the hacker.
Hot Take: French Court’s Decision Raises Concerns About Accountability
The French court’s decision to let the hackers walk free without consequences raises concerns about accountability in the crypto space. While bug bounties are common in the industry, it is important to distinguish between ethical hacking and criminal activities. This case highlights the need for clearer regulations and guidelines to address such incidents and ensure that hackers are held accountable for their actions. Without appropriate consequences, the security and trust in DeFi protocols may be compromised.
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