According to authorities in the area, French police have made two arrests in connection with the theft of cryptocurrencies worth 9.1 million euros perpetrated by Platypus, and have also reported the seizure of bitcoins worth 210,000 euros.

According to Platypus, on-chain detective ZachXBT and cryptocurrency exchange Binance provided assistance in the investigations that led to the arrests. On February 16, a single exploiter carried out three different flash loan raids, each resulting in a breach of the decentralized system.

As a consequence of the raids, several stablecoins were stolen in addition to other digital assets. The first assault led to the theft of approximately $8.5 million worth of valuables, which were later sold. In the second occurrence, around 380,000 assets were delivered to the Aave v3 contract when it was not due. The third raid resulted in the theft of around $287,000 in property. As a direct consequence of the hack, the stablecoin known as Platypus USD (USP) was de-pegged from the US dollar.

Platypus has just established that the perpetrators used a quick loan technique to investigate a logical flaw within USP’s solvency verification mechanism within the collateral holding. The operations of the stable exchange have not been disrupted in any way.

Avi Eisenberg, the Mango Market exploiter, is said to have employed a similar technique, known as a blitzkrieg, when he claimed credit for manipulating the price of the MNGO coin in October 2022. Following the discovery of the vulnerability, Eisenberg said that “all of our actions were legitimate open market actions, using the protocol as scheduled.” On December 28, Eisenberg was arrested in Puerto Rico on fraud-related charges.

On February 23, Platypus went public with its proposal to refund customers whose money was stolen. The protocol establishes that 63% of the money from the primary fund will be returned within a period of six months. Re-minting stablecoins that have been frozen according to the plan could result in 78% of the cash being returned. According to the protocol, “if our request submitted to Aave is granted and Tether verifies that the frozen USDT was remitted, we will be able to recover about 78% of the user’s cash.”