Decentralized leverage trading platform on Avalanche, Defrost finance pranešė that all the funds lost due to an exploit on its platform on Dec. 23 were returned on Dec. 26 after claims of a possible rug pull.
The hacked funds have been returned to #DefrostFinance.
The affected users will very soon be able to claim their assets back.
Išsami informacija 👇https://t.co/RpDqKAK44y
— Defrost Finance 🔺 (@Defrost_Finance) Gruodis 26, 2022
Defrost Finance affirmed that it would return all the lost funds to the exploited users after scanning the on-chain data to determine the ownership and amount of funds owned by each affected user.
Earlier, the Avalanche-based protocol reported the platform had been hacked, with an attacker withdrawing funds using the flash loan function.
On Dec.24, the firm claimed that only their V2 product was affected, and V1 remained safe.
Defrost Finance su liūdesiu praneša, kad mūsų V2 buvo įsilaužta, kai užpuolikas pasinaudojo greitos paskolos funkcija lėšoms išimti.
V1 neturi įtakos. Netrukus uždarysime V2 vartotojo sąsają ir toliau tirsime su savo technologijų komanda.
Atnaujinimai bus paskelbti mūsų oficialiuose kanaluose.
— Defrost Finance 🔺 (@Defrost_Finance) Gruodis 24, 2022
However, on Dec. 25, the team reported the hacker also obtained the owner key for a larger attack on the platform’s V1 product.
The hacker made almost $173k from the exploit, according to blockchain analytics firm PeckShield.
Šios @Defrost_Finance yra išnaudojamas, todėl įsilaužėlis gauna ~173 tūkst. Įsilaužimas tapo įmanomas dėl to, kad trūksta „flashloan()/deposit()“ funkcijų pakartotinio įėjimo užrakto, kurį įsilaužėlis panaudojo manipuliuodamas LSWUSDC akcijų kaina. pic.twitter.com/SINHUZXC0D
– „PeckShieldAlert“ (@PeckShieldAlert) Gruodis 23, 2022
Upon further analysis, PeckShield atskleidė that a fake collateral token was added. A malicious price oracle was used to liquidate current users for a total loss of more than $12 million, indicating a possible rug pull.
Further, blockchain security firm Certik claimed that the exploit was an exit scam after they couldn’t get any response to their queries from Defrost Finance team.
On 24 December we have seen an #exitscam on @Defrost_Finance
We have attempted to contact multiple members of the team but have had no response.
The team are not KYC’d but we are using all the information that we do have to assist with authorities pic.twitter.com/XC009dM40T
— CertiK įspėjimas (@CertiKAlert) Gruodis 26, 2022
On the same note, DeFiYieldApp, a Web3 security firm, tweeted that they warned the DeFi Community one year ago about the Defrost Finance smart contract vulnerability that allows the firm to rugpull its users.
Even though there are no clear indications whether the hack was a rug pull, the firm has shown a willingness to negotiate with the hackers to return funds.
On Dec. 25, the total value of funds locked on the protocol had dropped to less than $93,000 from $13.16 million after the attack, according to DefiLlama duomenys.
Source: https://cryptoslate.com/defrost-finance-says-it-has-recovered-lost-funds-worth-12-million-from-hacker/