HEADLINE SUMMARY: Platypus Finance Hack Suspects Acquitted by French Court Due to Smart Contract Technicality
DETAILS: In February 2023, the individuals behind the $8.5 million hack of Platypus Finance on the Avalanche network were cleared of criminal charges by a French court. The court ruled that their use of a flawed smart contract did not amount to fraud, as reported by Le Monde.
IDENTIFIED DEFENDANTS: Brothers Mohammed and Benamar M. were arrested a week post the hack with the assistance of crypto investigator ZachXBT and Binance.
CHARGES AND ACQUITTAL: Mohammed, 22, faced multiple charges related to the attack, while his brother was accused of receiving stolen goods. Prosecutors sought a five-year prison term for Mohammed. However, both were acquitted after Mohammed claimed to be an “ethical hacker” intending to return the funds to the protocol with hopes of a 10% bonus.
FLASH LOAN ATTACK DETAILS: During the attack, Mohammed inadvertently locked away millions of dollars of stolen funds. Platypus managed to recover $2.4 million in USDC through a counter-hack. Mohammed’s use of Platypus’s vulnerable “emergency withdrawal” smart contract was at the center of the controversy.
COURT’S RULING: The judges determined that charges related to unauthorized computer system access did not apply since Mohammed accessed a publicly available smart contract. Additionally, the court concluded that Mohammed’s utilization of Platypus’s vulnerable smart contract did not constitute fraud.
DROPPED CHARGES: With fraud charges dismissed, the court also dropped charges related to money laundering and receiving stolen goods. However, the judges warned the brothers that civil court proceedings by Platypus were still possible, emphasizing that the acquittal was not a blanket endorsement.
