Markets News Report
December 04, 2023

French Court Acquits Hackers from Platypus Stablecoin Case

French Court Acquits Hackers from Platypus Stablecoin Case

A French court has acquitted two hackers involved in the Platypus stablecoin attack on the Avalanche network, where they allegedly siphoned off $8.5 million. The defendants argued they were ‘ethical hackers’, intending to expose vulnerabilities and later return the funds.

In February, Platypus USP, a stablecoin project, suffered a significant loss due to a flash loan attack. The event led to the siphoning of approximately $8.5 million from one of its cryptocurrency pools.

Mohammed M., one of the defendants, presented himself as an ‘ethical hacker’ and claimed he acted with good intentions. He aimed to exploit loopholes in the system and return the assets later, potentially earning a ‘bonus’ from the company for identifying the flaw.

How Binance Led to the Platypus Hackers Arrest

The investigation gained momentum following a tip from the cryptocurrency exchange Binance. This lead helped investigators track the financial flows and apprehend Mohammed M. and his brother Benamar M. in February.

During the trial, Mohammed M., a self-taught IT enthusiast, argued that he discovered the vulnerability by chance and exploited it to demonstrate the security lapse. His brother faced charges of receiving stolen property. However, both were ultimately acquitted.

This case highlights the inherent risks in decentralized finance (DeFi), where automation and smart contracts can be susceptible to exploitation. The acquittal in this case raises questions about ethical hacking and its boundaries in the rapidly evolving world of cryptocurrencies.

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About The Author

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

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Nik Asti
Nik Asti

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

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