Crypto Court Drama Ends in Acquittal: Hackers Find Unexpected Loophole

French Court Acquits Defendants Accused of Hacking the Avalanche Stablecoin Project Platypus

French Court acquits hackers accused of targeting Avalanche Stablecoin project Platypus.

In a wild twist of events, a French court has just acquitted the accused masterminds behind the audacious $8.5 million hack on Platypus Finance, an automated market maker (AMM) protocol on the Avalanche blockchain. If there was ever a real-life courtroom spectacle that could rival a gripping legal drama series, this case would surely take the crown.

According to a report by Le Monde, the defendants—Mohammed and Benamar M.—were nabbed right after the hack, thanks to the crypto superhero ZachXBT and the heroic support of Binance. But don’t let the capes fool you, because this courtroom showdown was nothing short of a rollercoaster ride.

Aged just 22, Mohammed was charged with orchestrating the cyberattack, while his brother stood accused of receiving stolen goods. Prosecutors were gunning for a five-year prison sentence for Mohammed. But get this: during the trial, the accused hacker cleverly claimed to be an “ethical hacker” who had planned to return the stolen funds to the protocol, cleverly hoping for a 10% bonus. It’s like trying to rob a bank but promising to return the money with a dash of interest—ambitious, to say the least!

However, things didn’t quite pan out as expected. In a twist even the best scriptwriters couldn’t have predicted, Mohammed found himself in a sticky situation. Due to an unfortunate error during the flash loan attack, he inadvertently locked away a significant portion of the stolen funds. Ouch! The heist turned into a comedy of errors, leaving him with a paltry $270,000. But here’s the unexpected twist: the protocol fought back with a counter-hack and managed to salvage a whopping $2.4 million in USDC. Talk about turnabout being fair play!

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But let’s get back to the courtroom drama. The juiciest moment came when the court ruled that the charges of unauthorized access to a computer system didn’t hold water. Why, you ask? Because the smart contract used by our hacker friend was publicly accessible. In legal terms, our cunning cyber warrior found an unexpected loophole—his actions technically did not qualify as unauthorized access. It’s like someone walking through the front doors of a bank during business hours and being told it’s not trespassing. We couldn’t make this up if we tried!

Not stopping there, the court also declared that Mohammed’s use of Platypus’s “emergency withdrawal” smart contract, which conveniently had the vulnerability he exploited, did not constitute fraud. So, charges related to money laundering and receiving stolen goods were promptly dropped. However, the court politely stamped a “Caution: Handle with Care” label on these brothers because Platypus still had the option of seeking legal retribution in civil court. In other words, they’re not quite off the hook yet, even if the criminal charges didn’t stick.

Now, let’s zoom out for a moment and take a snapshot of the bigger picture. While this crypto courtroom escapade may be delivering on the entertainment quotient, it also serves as a reminder that the industry is still a long way from fully securing digital assets. Think of it as a thrilling episode that ends with a cliffhanger—we’re left wondering what will happen next.

“With numerous hacks and exploits occurring, it’s evident that there’s a lot of work to be done to make the field safer,” warns Sipan Vardanyan, CEO and Co-Founder at the crypto security firm Hexens. It’s almost like trying to keep a high-stakes poker game safe from a band of tricksters—it requires constant vigilance and fortification.

This year alone, Web3 platforms have lost over $1.2 billion in hacks and rug pulls, according to a report from the bug-hunting experts at Immunefi. That’s a jaw-dropping sum of money! Breaking it down, there have been 211 separate incidents contributing to these losses—enough to keep a crime TV series running for multiple seasons. And the cherry on top? August alone witnessed a staggering $23.4 million in losses.

So let’s raise a glass to the end of this cryptic courtroom tale, but let it be a reminder that the crypto world is still a thrilling and treacherous landscape. With each plot twist, we inch closer to a safer future where cybercriminals will struggle to find the holes, just like villains thwarted by an impervious superhero team. Until then, stay vigilant and stay crypto-savvy!

Are you ready to join the crypto arena? Share your thrills and chills in the comments below! Let us know your thoughts on this courtroom spectacle and how it reflects the need for stronger security measures in the digital asset world.

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