Defrost finance says it has recovered lost funds worth $12 million from hacker

Hull Invest

Avalanche, Defrost Finance’s Decentralized Leveraged Trading Platform report All funds lost due to misuse on the company’s platform on December 23rd were returned following claims that they may have been returned on December 26th.

Defrost Finance has vowed to return all lost funds to abused users after scanning data on-chain to determine the ownership and amount of funds owned by each affected user. did.

Previously, an Avalanche-based protocol reported that its platform was hacked and attackers used its flash loan feature to withdraw funds.

On December 24th, the company claimed that only V2 products were affected and V1 remained safe.

However, the team reported on Dec. 25 that hackers also obtained the owner key for a larger attack on the platform’s V1 product.

According to blockchain analytics firm PeckShield, hackers made around $173,000 from the exploit.

Further analysis reveals that the PeckShield clearly Added fake collateral tokens. Using a malicious price oracle to liquidate current users, resulting in a total loss of over $12 million, indicated Lag’s pull potential.

Additionally, blockchain security firm Certik claimed the exploit was an exit scam after receiving no response to inquiries from the Defrost Finance team.

Similarly, DeFiYieldApp, a Web3 security company, murmured It warned the DeFi community about a vulnerability in Defrost Finance’s smart contracts a year ago, which helped the company attract users.

There’s no clear indication if the hack was a rug pull, but the company has indicated it’s willing to negotiate with the hackers to return the funds.

On Dec. 25, the total amount of funds locked in the protocol fell from $13.16 million after the attack to less than $93,000, it said. Defilama data.

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