Defrost Finance Announces To Recover All Funds Taken During V1 Hack

Key Points:

• ETH in the address will be converted to stablecoins at the on-chain market rate, while stablecoins will be crossed from Ethereum to Avalanche, according to Defrost Finance.
• DeFiYield revealed that the developers behind Defrost Finance were the same as those behind Phoenix Finance (FinNexus).

Defrost Finance, the decentralized trading platform that was the victim of a $12 million hack in the days running up to Christmas, has announced the process of refunding assets to owners. However, DeFiYield at the same time announced it have done its Exclusive On-Chain investigation on Defrost, exposing the exploited firm was lying.

As Coincu reported on December 25, Defrost Finance had initiated an investigation into a potential attack on its Defrost v1 and v2 platforms after users complained about substantial losses in their accounts. The platform then chose to shut down Defrost v2 while warning the customers that their Defrost v1 was also under attack. The investigation revealed more than $12 million in losses.

Defrost Finance’s TVL dropped to just $13.14 million on December 23, the day of the initial attack, according to DefiLlama.

On December 26, Coincu reported that the stolen assets were restored to the platform, and the impacted users will be able to recover their valuables very shortly.

Yesterday, the firm updated more information about the act of recovering funds for victims being affected by the V1 hack.

In the statement, Defrost Finance stated that ETH in the address will be converted to stablecoins (preferably DAI) at the on-chain market rate, while stablecoins will be crossed from Ethereum to Avalanche.

However, in the early morning today, DeFiYield said that Defrost Finance was lying by showing on-chain evidence that the inventor of the multi-sig wallet was the same address that requested and later accepted the transactions that introduced the malicious source oracle that liquidated users.

It further claimed that the developers behind Defrost Finance were the same as those behind Phoenix Finance (FinNexus), which was abused for $7.6 million in what some suspected was an inside job in May 2021.

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