#CryptoHack #PlatypusFinance #BlockchainSecurity #CyberCrime #DeFi #AVAX #Cryptocurrency #SmartContract
In a recent hack that shocked the crypto-sphere, French brothers Mohammed and Benamar M. were surprisingly cleared of all charges tied to their planning of the $8.5 million breach of Platypus Finance, an Automated Market Maker protocol that operates on the Avalanche blockchain. This decision was reported by French newspaper Le Monde, who highlighted the ruling that “French criminal law does not technically outlaw hacks of protocol.” This verdict not only led to the dismissal, but it also complicates future lawsuits involving cryptocurrency exploits, raising questions about the legality of such hacks.
Following the hack in February 2023, authorities held the brothers less than a week after Platypus Finance became the target of a calculated cyberattack. However, the court ruled that there existed no criminal statutes under which Mohammed’s operation of smart contracts, unlicensed and publicly available, could be deemed illegal in the context of a system breach. Further, the courts established that exploiting the defective emergency withdrawal scheme of Platypus to drain tokens did not meet the necessary legal criteria for fraud. Quite uniquely, the brothers confessed to their participation in the crime, claiming to be “ethical hackers” in a court session held on October 26. Ethical hackers, often referred to as “white hat hackers,” collaborate with firms to spot and remedy security loopholes in their systems. With explicit authorization, they run tests to strengthen digital defenses, intending to thwart harmful exploits.
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