Defrost Finance Will Return Hacked Funds To Rightful Owners

Key Points:

• The stolen money has been returned to the protocol, according to a tweet from Defrost Finance. The impacted users will be able to recover their assets very soon.
• Defrost Finance was abused in the past. A malicious price oracle was employed along with the addition of a fake collateral token to liquidate existing users. The damage was more than $13 million.
• The Defrost Finance team was open to discussing a 20% share of the funds with the hackers in exchange for the majority of the assets. They urged the hackers to get in touch with them right away.

The stolen assets were restored to the platform, according to a statement from Defrost Finance, a decentralized leveraged trading protocol on Avalanche. The impacted users will be able to recover their valuables very shortly.

Defrost Finance was exploited in the past. A malicious pricing oracle was employed, along with the addition of a phony collateral token to liquidate existing users. The damage was more than $12 million.

The Defrost team said on December 25 that the initial attack used a flash loan to siphon money from its V2 product. The owner key was used to exploit V1 in a second, more significant attack. The leveraged trade protocol on the Avalanche blockchain didn’t specify how much money had been taken.

When developers construct and set up a liquidity pool and then take the money out and vanish after investors have purchased the associated token, this is known as a rug pull or exit scam. Usually, the team responsible for the scheme disappears and cannot be reached.

Defrost Finance, on the other hand, tweeted about the incident and stated that it was ready to talk with the perpetrators for a recovery of the money.

The team at Defrost Finance was open to discussing a 20% (negotiable) share of the funds in exchange for the majority of the assets with the hackers. They urged the hackers to get in touch with them right away.

According to CertiK Alert, a crypto real-time alerts platform, the Defrost Finance initiative is an attempt to defraud investors by pretending to be an exit scam. In addition to this, they asserted that the Defrost team did not conduct KYC procedures prior to the launch of the project.

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