Defrost Finance, a decentralized leverage trading platform on Avalanche (AVAX), suffered a flash loan attack on December 23. As a first step, they took roughly $12 million, but the platform claims it received the funds and planned to “refund investors.”
Further, Defrost Finance’s team claims a stolen owner key breached its V1 protocol, while others suspect a rug pull. The trading platform tweeted recently that all funds taken during the V1 hack were soon returned.
According to Defrost Finance, all the returned assets will be converted into stablecoins, “preferably DAI.” During the process of moving the crypto from Ethereum to Avalanche, the team will begin scanning the blockchain to find out who owned what before the hack..”
Defrost Finance mentions in another tweet that they are developing a decentralized stablecoin smart contract that will deliver funds to their rightful owners.
In addition to 2,443.89 Ethereums, the account holds $9.911 million worth of DAI stablecoins, according to the Ethereum address shared by the trading platform.
In October, hackers returned 93.1% of the $8.4 million stolen from the Moola Market exploit. In response to the platform’s bounty announcement, the assets were returned.
As a result of the blockchain security firm ImmuneFi’s creation, ethical hackers have received nearly $66 million in crypto bounties.