Defrost Finance a DEX and DeFi platform has reported it got hacked

Defrost Finance a leading DEX and DeFi platform on Avalanche has reported it got hacked and negotiating with hackers Defrost Finance a leading DEX and DeFi platform on Avalanche has reported it got hacked and negotiating with hackers

Benjamin

• Updated: Monday, December 26, 2022, 18:24

Share

Defrost Finance a leading DEX and DeFi platform on Avalanche has reported it got hacked and negotiating with the hackers. "We are willing to discuss sharing 20% (negotiable) of the funds in exchange for the bulk of assets and are calling on the hackers to contact us asap" Defrost team urged hackers on Twitter.

Leading blockchain security and analytics platform PeakshieldPeakshield citing "community intel" said the exploit may have been a planned rug pull which is denied by the Defrost team explaining the attack scenario.

The Defrost team said the first attack used a flash loan to drain funds out of its V2 product and then the second larger attack used the owner key to exploit V1.

Smart Contract analysis and security platform "DeFiYield Web 3 Security" claimed on its twitter that they have warned the users 1 year ago about the bug exploited in this hack, which can allow the team to change oracle source and liquidate user collaterals eventually leading to rug pull or exit scam when they performed audit on Defrost.

In the fiasco where all called Defrost a rug pull the team announced that the hackers have returned the funds and they will very soon allow the affected users to claim their assets back.

Defrost team released the medium article on its channel where they told "We will soon start scanning the data on-chain to find out who owned what prior to the hack in order to return them to the rightful owners. As different users had variable proportions of assets and debt, this process might take a little [time],"

This article was originally published on: Dec 26, 2022 at 06:24 PM

DISCLOSURE

CoinNeutral is a source of information on cryptocurrency, digital assets & markets, acquired and compiled from various sources. CoinNeutral strives for highest standards in the information published by verifying and factchecking before publishing.