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Wednesday, January 25, 2023

Defrost Finance Claims That Lost Funds Have Been Returned

The hacker in the bigger V1 assault, according to Defrost Finance, who revealed on Sunday that its V1 and V2 products had been compromised, has refunded the monies.

“In order to restore items to their rightful owners, we will shortly begin scanning the data on-chain to determine who had them before the breach. This procedure could take a little bit of time because various users have varying ratios of assets and debt “According to a blog post that was referenced on the decentralized financial protocol’s website.

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The team said that the first assault utilized a flash loan to siphon money from its V2 product in a Twitter thread published on December 25. The owner key was used to exploit V1 in a second, more significant assault. The leveraged trade protocol on the Avalanche blockchain didn’t specify how much money had been stolen.

Defrost Finance’s Lost Funds Have Been Returned

At the time, the blockchain security company Peckshield said, using “community knowledge,” that the vulnerability could have been a scam that stole $12 million. Today, the security firm Certik, which also claimed to have been unable to reach the team, produced a graphic suggesting that it was classifying Defrost as an exit scam. The Twitter account for Defrost is not set up to receive private messages.

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 group 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.

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