The Platypus team successfully traced its platform exploiter and was detained by france police.
The decentralised finance (Defi) Platypus protocol is an auto market maker (AMM) on Avalanche, Open liquidity single-sided AMM managing risk autonomously based on the coverage ratio, which provides maximal capital efficiency.
At 7:16 pm UTC on February 16th, Platypus was exploited and hackers succeeded in securing $9.9 million worth of crypto assets. At that time, the Platypus team said that the Binance crypto exchange intelligence team & crypto detective Zachxbt was in contact to take action against the culprit behind the exploit. The team noted that hackers succeeded in tricking its Defi platform because of a bug.
“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 team Investigation noted.
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Investigation revealed that explorers transferred those funds to crypto mixer Tornado Cash, which was banned by the US OFCA agency in 2022, and encryption service Aztec Network.
On the same day, the Platypus team pledged to give compensation to the affected users by 63% fund, as the team succeeded in recovering a part of the $9.9 million in stolen funds.
On 25 Feb 2023, the Platypus team confirmed that they succeeded to trace two suspects behind the attack with the collaborative help of Binance & Zachxbt, and also France police authority arrested these two people.
Update: @PoliceNationale have arrested and summoned 2 suspects who were reportedly exploiting our platform.
Thanks to the assistance of @binance and @zachxbt in tracing their identities.
Kudos to the prompt action by the authorities!— Platypus
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) (@Platypusdefi) February 25, 2023
So now we may expect that the Defi team will surely recover all the stolen funds successfully, as two suspects have been detained by french enforcement agencies. Alongside this success story, we can see the failure of the Defi protocols continuously over the last few years and these are showing that people needed to wait for a better version of Defi smart contracts, free from any kind of bugs & errors.
Read also: ETH devs propose new Ethereum testnet
Defi Protocol Platypus successfully caught its platform exploiter
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