French Police Arrest Hackers Allegedly Associated With Exploit of Avalanche-Based DeFi Protocol
The French National Police have arrested two individuals allegedly behind the $9.19 million hack on Avalanche (AVAX)-based decentralized finance (DeFi) protocol Platypus Finance.
The French police also announced they seized €210,000 ($222,505) worth of cryptocurrencies.
Platypus itself also confirms the development.
Platypus, an automated market maker for stableswap, suffered three separate attacks on February 16th. The first attack was the largest, facilitating the theft of $8.5 million worth of stablecoins.
Platypus says in an announcement that it managed to freeze $1.5 million worth of stolen Tether (USDT). The project was also able to “leverage the existing code in the attack contract and retrieve 2.4 million USDC,” with the help of blockchain security infrastructure firm BlockSec.
Says Platypus of the attack,
“Our investigation revealed that the bug responsible for the attack was a logic error in the USP solvency check mechanism within the collateral-holding contract.”
The protocol’s stablecoin, Platypus USD (USP), which just launched this past December, lost its desired peg in the wake of the attack and is trading all the way down at $0.339 at time of writing.
Platypus also says it has a plan to compensate impacted liquidity pools (LPs).
“After the attack, around 35.4% of the funds remained in the main pool. The surplus that we kept in the main pool will be fully utilized to compensate the affected LPs for their loss. As we have recovered 2.4 million USDC (17.7% of pre-attack assets) from the attack contract, approximately 53.1% of the pool funds will be refunded to all affected LPs. We are currently discussing with various parties to help recreate stablecoins that were trapped in the attack contract. Once any stablecoins are retrieved, we will distribute the reminted tokens to LPs on a pro-rata basis.”
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The post French Police Arrest Hackers Allegedly Associated With Exploit of Avalanche-Based DeFi Protocol appeared first on The Daily Hodl.
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Author: Conor Devitt
