Defrost Finance Recovers $12 Million Of Stolen Funds
The hack on Defrost Finance, which was initially thought to be a rugpull by the project’s owner, has been confirmed as an actual cyberattack. A total of $12 million in stolen funds has also been recovered.
Event Of Cyberattack
On Sunday, Defrost Finance, a decentralized finance protocol, announced that its networks, the V1 and V2 networks, had been hacked. However, during the hack, more funds were stolen from the V2 network, and information reaching the public shows that these stolen funds have been returned.
According to the firm’s statement, they would begin carrying out procedures of on-chain analysis to figure out how to allocate these funds to the rightful owner, by checking who owned each and every fund prior to the hack attack.
However, there were differences in the amount of funds that each individual possessed, and successfully carrying out the proper allocation would take a long time.
The team however described the entire hacking event, claiming that the hacker used a flash loan to gain access to and remove funds from the V2 network.
The second attempt on the V1 network, however, was a little different because the hacker gained access to the owner’s key and used it to drain funds from the V1 network.
They also stated that affected customers will be able to claim their funds very soon.
The Defrost finance protocol provides a leverage means of trading on the Avalanche blockchain, but there were no comments on how much was taken.
Supposed Hack Speculated As Rug Pull
According to Peckshield, a block chain analysis firm, the alleged hack was a rug pull of more than $12 million at the time.
Certik, another security firm, stated that during the period of the said hack, it was unable to reach any of the Defrost finance team members, leading it to believe that this was a doctored operation and posted graphics painting the company to be a scam.
The phrase “rug pull” refers to when a project owner who owns a significant portion of its token urges investors to buy more of it and hold it, leading to an increase in the price of the token. As this is happening, the project’s owner sells all of its own tokens to the market, completely sinking and ruining the project as the token price plummets.
At Tokenhell, we help over 5,000 crypto companies amplify their content reach—and you can join them! For inquiries, reach out to us at info@tokenhell.com. Please remember, cryptocurrencies are highly volatile assets. Always conduct thorough research before making any investment decisions. Some content on this website, including posts under Crypto Cable, Sponsored Articles, and Press Releases, is provided by guest contributors or paid sponsors. The views expressed in these posts do not necessarily represent the opinions of Tokenhell. We are not responsible for the accuracy, quality, or reliability of any third-party content, advertisements, products, or banners featured on this site. For more details, please review our full terms and conditions / disclaimer.
