Defrost Finance, a decentralised leveraged trading platform built on the Avalanche blockchain, has announced that both of its versions — Defrost v1 and Defrost v2 — are under investigation for a hack.
Investors reported losing their staked Defrost Finance (MELT) and Avalanche tokens from MetaMask wallets, prompting the announcement.
Doran, a core team member at Defrost Finance, confirmed that Defrost v2 was hit with a flash loan attack just moments after a few users complained about the unusual loss of funds. At the time, the platform believed Defrost v1 was unaffected by the hack and decided to suspend v2 for further investigation.
At the time, the platform believed Defrost v1 was not impacted by the hack and decided to close down v2 for further investigation.
Blockchain investigator PeckShield found that the hacker manipulated the share price of LSWUSDC, leading to a gain of roughly $173,000 for the hacker.
(Reporting by Shikha Singh, Editing by Kapil Rajyaguru)
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