Defrost Finance, which on Sunday said its V1 and V2 products had been exploited, said the hacker in the larger V1 attack has returned the funds.
In a tweet thread posted Dec. 25, the team said a first attack used a flash loan to drain funds out of its V2 product. A second larger attack used the owner key to exploit V1. The protocol, which offers leveraged trading on the Avalanche blockchain, didn’t say how much had been taken.
Blockchain security firm Peckshield, citing “community intel,” said at the time that the exploit may have been a rug pull that made off with $12 million. Earlier today Certik, also a security company, said it had been unable to contact members of the team and posted a graphic indicating it was treating Defrost as an exit scam.
A rug pull, or exit scam, can occur when developers create and establish a liquidity pool and then remove the funds and disappear after investors have bought the related token. Usually the team behind the scheme goes silent and can’t be contacted. Defrost Finance, however, announced the attack and said in a tweet that it was willing to negotiate with the people responsible for a return of the funds.
(Reporting: Shikha Singh, Editing: Laxmikant Khanvilkar)
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