Two brothers, responsible for the theft of $8.5 million from decentralized finance (DeFi) protocol Platypus, were allowed to walk free with no repercussions by a French court.
On Feb. 16, hackers managed to drain and move $8.5 million from Platypus through a flash loan attack, forcing the protocol to suspend trading services until a resolution was found. Initial investigations identified Mohammed M. as the culprit, who took advantage of a code error and withdrew all assets through an uncollateralized loan.
We are seeing a #flashloan attack on @Platypusdefi resulting in a potential loss of ~$8.5M.
Tx AVAX: 0x1266a937c2ccd970e5d7929021eed3ec593a95c68a99b4920c2efa226679b430
Stay Frosty! pic.twitter.com/AM2HOM5M2r
— CertiK Alert (@CertiKAlert) February 16, 2023
With the help of Binance’s security team and independent crypto investigators, the stolen funds were tracked, eventually leading to the hackers — Mohammed and his brother Benamar M.
While the duo were held indefinitely in custody from Feb. 24, on an Oct. 26 court hearing, the brothers claimed to be “ethical hackers” while admitting to stealing and siphoning the funds. The hackers also told the Paris judicial court about their intent to return the funds in exchange for 10% of the loot.
Considering the similarity to a bug bounty attempt, the brothers were cleared of all criminal charges. During the exploit, 7.8 million euros worth of crypto tokens became inaccessible after getting stuck in a wallet.
Related: Platypus Finance recovers 90% of assets lost in exploit
Amid legal proceedings related to the hack, Platypus recently suffered a loss of $2.2 million in another flash loan exploit.
Due to suspicious activities in our protocol, we have taken the proactive measure of temporarily suspending all pools.
Further updates will be communicated to the community in a timely manner.
Thank you for your patience and understanding during this time.— Platypus (++) (@Platypusdefi) October 12, 2023
Blockchain security firm CertiK’s investigation revealed that the Oct. 12 hack was carried out in three parts, with each attack draining $2.23 million, $575,000 and $450,000, respectively, in various cryptocurrencies.
On Oct. 17, Platypus managed to recover 90% of the stolen following an understanding with the hacker.
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A fast-tracked temporary crypto regulatory framework could bolster innovation within the US crypto industry while permanent regulations are still in the works, says acting US Securities and Exchange Commission (SEC) chair Mark Uyeda. “A time-limited, conditional exemptive relief framework for registrants and non-registrants could allow for greater innovation with blockchain technology within the United States in the near term,” Uyeda said at the SEC’s April 11 Crypto Task Force roundtable titled “Between a Block and a Hard Place: Tailoring Regulation for Crypto Trading.” Uyeda said this might be the short-term answer as the SEC works toward a “long-term solution,” at the roundtable with SEC members and crypto industry executives, including Uniswap Labs’ Katherine Minarik, Cumberland DRW’s Chelsea Pizzola, and Coinbase’s Gregory Tusar. He flagged state-by-state regulation of crypto trading as a concern, warning it could lead to a “patchwork of state licensing regimes.” Uyeda said that a favorable federal regulatory framework would ease the burden for market participants wishing to offer tokenized securities and non-security crypto assets, allowing them to operate under a single SEC license instead of navigating “fifty different state licenses.” He urged crypto market participants to share feedback on areas where “exemptive relief” could be appropriate. Uyeda also reiterated the benefits of blockchain technology in financial markets during the roundtable discussion. “Blockchain technology offers the potential to execute and clear securities transactions in ways that may be more efficient and reliable than current processes,” Uyeda said. “Blockchains can be used to manage and mobilize collateral in tokenized form to increase capital efficiency and liquidity,” he added. Uyeda will continue serving as acting SEC chair until US President Donald Trump’s nominee, Paul Atkins, is officially sworn in. On April 10, the US Senate confirmed Atkins as chair of the SEC in a 52-44 vote largely along party lines. Related: SEC, Ripple file joint motion to pause appeals in XRP case Uyeda has served as acting SEC chair since Jan. 20, succeeding former chair and crypto skeptic Gary Gensler. He’s been widely seen within the industry as a pro-crypto advocate. On March 18, Cointelegraph reported that Uyea said the SEC could change or scrap a rule proposed under the Biden administration that would tighten crypto custody standards for investment advisers. “I have asked the SEC staff to work closely with the crypto task force to consider appropriate alternatives, including its withdrawal,” Uyeda said. Magazine: Memecoin degeneracy is funding groundbreaking anti-aging research
In a significant win for decentralized finance (DeFi) protocols, US President Donald Trump overturned the Internal Revenue Service’s DeFi broker rule, which would have expanded existing reporting requirements to include DeFi platforms. Increasing US crypto regulatory clarity will attract more tech giants to the space, requiring existing crypto projects to focus on more collaborative tokenomics to survive, according to Cardano founder Charles Hoskinson. Trump signed a joint congressional resolution overturning a Biden administration-era rule that would have required DeFi protocols to report transactions to the Internal Revenue Service. Set to take effect in 2027, the IRS DeFi broker rule would have expanded the tax authority’s existing reporting requirements to include DeFi platforms, requiring them to disclose gross proceeds from crypto sales, including information regarding taxpayers involved in the transactions. Trump formally killed the measure by signing off on the resolution on April 10, marking the first time a crypto bill has been signed into US law, Representative Mike Carey, who backed the bill, said in a statement. “The DeFi Broker Rule needlessly hindered American innovation, infringed on the privacy of everyday Americans, and was set to overwhelm the IRS with an overflow of new filings that it doesn’t have the infrastructure to handle during tax season,” he said. The next generation of cryptocurrency projects must embrace a more collaborative approach to compete with major centralized tech companies entering the Web3 space, according to Cardano founder Charles Hoskinson. Speaking at Paris Blockchain Week 2025, Hoskinson said one of the main criticisms of the crypto and DeFi space is its “circular economy,” which often means that the rally of a specific cryptocurrency is bolstered by funds exiting another token, limiting the growth of the whole industry. Hoskinsin said that to have a chance against the centralized technology giants joining the Web3 industry, cryptocurrency projects need more collaborative tokenomics and market structure. Hoskinson on stage at Paris Blockchain Week. Source: Cointelegraph “The problem right now, with the way we’ve done things in the cryptocurrency space, is the tokenomics and the market structure are intrinsically adversarial. It’s sum 0,” said Hoskinson. “Instead of picking a fight, what you have to do is you have to find tokenomics and market structure that allows you to be in a cooperative equilibrium.” He argued that the current environment often sees one crypto project’s growth come at the expense of another rather than contributing to the sector’s overall health. He added that this is not sustainable in the face of trillion-dollar firms like Apple, Google and Microsoft, which may soon join the Web3 race amid clearer US regulations. Bitcoin and other cryptocurrencies are often praised for offering around-the-clock trading access, but that constant availability may have contributed to a steep sell-off over the weekend following the latest US trade tariff announcement. Unlike stocks and traditional financial instruments, Bitcoin (BTC) and other cryptocurrencies enable payments and trading opportunities 24/7 thanks to the accessibility of blockchain technology. After a record-breaking $5 trillion was wiped from the S&P 500 over two days — the worst drop on record — Bitcoin remained above the $82,000 support level. But by Sunday, the asset had plummeted to under $75,000. Sunday’s correction may have occurred due to Bitcoin being the only large tradable asset over the weekend, according to Lucas Outumuro, head of research at crypto intelligence platform IntoTheBlock. “There was a bit of optimism last week that Bitcoin might be uncorrelating and fairing better than traditional stocks, but the [correction] did accelerate over the weekend,” Outumuro said during Cointelegraph’s Chainreaction live show on X, adding: “There’s very little people can sell on a Sunday because most markets are closed. That also enables the correlation because people are panicking and Bitcoin is the largest asset they can sell over the weekend.” Outumuro noted that Bitcoin’s weekend trading can also have upside effects, as prices often rally in calmer conditions. Bybit’s market share rebounded to pre-hack levels following a $1.4 billion exploit in February, as the crypto exchange implemented tighter security and improved liquidity options for retail traders. The crypto industry was rocked by the largest hack in its history on Feb. 21, when Bybit lost over $1.4 billion in liquid-staked Ether (stETH), Mantle Staked ETH (mETH) and other digital assets. Despite the scale of the exploit, Bybit has steadily regained market share, according to an April 9 report by crypto analytics firm Block Scholes. “Since this initial decline, Bybit has steadily regained market share as it works to repair sentiment and as volumes return to the exchange,” the report stated. Block Scholes said Bybit’s proportional share rose from a post-hack low of 4% to about 7%, reflecting a strong and stable recovery in spot market activity and trading volumes. Bybit’s spot volume market share as a proportion of the market share of the top 20 CEXs. Source: Block Scholes The hack occurred amid a “broader trend of macro de-risking that began prior to the event,” which signaled that Bybit’s initial decline in trading volume was not solely due to the exploit. Almost 400,000 creditors of the bankrupt cryptocurrency exchange FTX risk missing out on $2.5 billion in repayments after failing to begin the mandatory Know Your Customer (KYC) verification process. About 392,000 FTX creditors have failed to complete or at least take the first steps of the mandatory Know Your Customer verification, according to an April 2 court filing in the US Bankruptcy Court for the District of Delaware. FTX users originally had until March 3 to begin the verification process to collect their claims. “If a holder of a claim listed on Schedule 1 attached thereto did not commence the KYC submission process with respect to such claim on or prior to March 3, 2025, at 4:00 pm (ET) (the “KYC Commencing Deadline”), 2 such claim shall be disallowed and expunged in its entirety,” the filing states. FTX court filing. Source: Bloomberglaw.com The KYC deadline has since been extended to June 1, giving users another chance to verify their identity and claim eligibility. Those who fail to meet the new deadline may have their claims permanently disqualified. According to the court documents, claims under $50,000 may account for about $655 million in disallowed repayments, while claims over $50,000 could amount to $1.9 billion, bringing the total at-risk funds to more than $2.5 billion. According to data from Cointelegraph Markets Pro and TradingView, most of the 100 largest cryptocurrencies by market capitalization ended the week in the red. The EOS (EOS) token fell over 23%, marking the week’s biggest decline in the top 100, followed by the Near Protocol (NEAR) token, down over 19% on the weekly chart. Total value locked in DeFi. Source: DefiLlama Thanks for reading our summary of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights and education regarding this dynamically advancing space.
When the sun sets on Scunthorpe this Saturday, the town’s steelworks will likely have a new boss – Jonathan Reynolds. The law that parliament will almost certainly approve this weekend hands the business secretary the powers to direct staff at British Steel, order raw materials and, crucially, keep the blast furnaces at the plant open. This is not full nationalisation. But it is an extraordinary step. The Chinese firm Jingye will – on paper – remain the owner of British Steel. But the UK state will insert itself into the corporate set-up to legally override the wishes of the multinational company. A form of martial law invoked and applied to private enterprise. That will come at a cost to the taxpayer. Follow latest: Live politics updates No number has been specified, but there are wages to pay and orders to make at a site estimated to already be losing £700,000 a day. There is also clear frustration in government at how the Chinese owners have engaged in negotiations around modernising the Scunthorpe site. “Jingye have not been forthright throughout this process”, said the business secretary in his department’s official announcement about the new laws. Time is so tight because of the nature of the steel-making process. Please use Chrome browser for a more accessible video player Inside the UK’s last blast furnaces Once switched off, blast furnaces are very hard to turn back on. If this had happened in Scunthorpe – as seemed likely in a matter of days – then it would have been game over. This move keeps the show on the road and opens up more time for talks over the long-term future of the plant. While the official line in Whitehall is that “all options are on the table”, nationalisation seems increasingly likely. That would need more legislation, if it was done – as seems likely – without the approval of the current owner. Finding an alternative commercial partner has not been ruled out, but one is not waiting in the wings either. As for what that long-term future looks like, with just five years of life left in the Scunthorpe blast furnaces, modernisation is inevitable. Port Talbot’s plant saw its blast furnaces closed last year amid a switch to the more environmentally friendly electric arc furnaces and a loss of thousands of jobs. Political figures in Wales are now questioning why nationalisation wasn’t on the table for this site. The response from government is that the deal was done by the previous Tory administration and the owners of the South Wales site agreed to the terms. But there is also a sense that this decision over British Steel is being shaped by the domestic and international political context. Labour came to power promising to revitalise left-behind communities and inject a sense of pride back into places still reeling from the loss of traditional industry. With that in mind, it would be politically intolerable to see the UK’s last two blast furnaces closed and thousands of jobs lost in a relatively deprived part of the country. Read more from Sky News: Reform UK’s position of pushing for full and immediate nationalisation is also relevant, given the party is in electoral pursuit of Labour in many parts of the country where decline in manufacturing has been felt most acutely. The geo-political situation is perhaps more pressing though. Just look at the strength of the prime minister’s language in his Downing Street address – “our economic and national security are all on the line”. The government’s reaction to the turmoil caused by President Donald Trump’s pronouncements on tariffs and security has been to emphasise the need to increase domestic resilience in both business and defence. Becoming the only G7 nation unable to produce virgin steel at a time when globalisation appears to be in retreat hardly fits with that narrative. It would also present serious practical questions about the ability of the UK to produce steel for defence and the broader switch to green energy production. Then there is the intriguing subplot around US-China trade. While this decision is separate from discussions with the White House on tariffs, one can imagine how a UK move to wrestle control of a site of national importance from its Chinese owner might go down with a US president currently engaged in a fierce trade war with Beijing. This is a remarkable step from the government, but it is more a punctuation mark than a full answer. The tension between manufacturing and decarbonisation remains, as do the challenges presented by a global economy appearing to fragment significantly. But one thing is for sure. As a political parable about changes to traditional industry and the challenges of globalisation, the saga of British Steel is hard to beat. ‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series Story injured on diving stop, exits Red Sox game Game 1 of WS least-watched in recorded history MLB Rank 2023: Ranking baseball’s top 100 players Team Europe easily wins 4th straight Laver Cup Japan and South Korea have a lot at stake in a free and open South China Sea Game-changing Lectric XPedition launched as affordable electric cargo bike Bank of England’s extraordinary response to government policy is almost unthinkable | Ed Conway
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This is a remarkable step by the government – and Donald Trump, China and Reform UK have all played their part
A general view shows British Steel’s Scunthorpe plant.
Pic Reuters
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One of the two blast furnaces at British Steel’s Scunthorpe operation
