Search
Search
Defrost Finance Hacked in Attack Some Say May Be a Rug Pull

Defrost Finance Hacked in Attack Some Say May Have Been a Rug Pull

74 Listen to this article Protocol for decentralized finance Defrost Finance reported being hacked on Friday, however, blockchain security firm […]

Latest News

Listen to this article

Protocol for decentralized finance Defrost Finance reported being hacked on Friday, however, blockchain security firm PeckShield said, citing “community intel,” that the attack might have been a scam that stole $12 million, while Certik, another security business, claimed it had been unable to get in touch with the team. The Defrost team claimed in a tweet thread on Sunday that the first attack used a flash loan to siphon money from its V2 product. The more significant attack was the owner key was used to exploit V1 in a second. Moreover, the leveraged trade protocol on the Avalanche blockchain didn’t specify how much money had been taken.

Read Also : Crypto Thefts in 2023 : Nearly $1 Billion Lost to Scams and Exploits, Report Certik

Considering PeckShield’s study, the assault made use of a bogus collateral token and manipulated price. The developers, when constructing and setting up a liquidity pool and then take the money out and vanish after investors have purchased the linked token, this is known as a rug pull or exit scam. As per the Defi Llama data, the total amount of money held on Defrost Finance, which peaked at $95 million in February, has recently been around $13 million. On Sunday, that decreased to less than $93,000.

Read Also : Balancer Protocol Exploited for $900K as DeFi Hacks Mount : Finance Redefined

If a rug pull is an attack, that would be unique as typically, 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 would be open to negotiating a return of the monies with the perpetrators. Nevertheless, a Twitter attempt to contact the company was unsuccessful due to the account’s disabling of direct messages. On Monday, Certik tweeted that it had contacted various team members but had received no answer. According to a graphic that was included, DeFrost was an exit scam.

Read Also:  Binance Seeks India Re-Entry, Pays $2M Fine: Report

Read Also : Vitalik Buterin Confirmed X Account Hacked by SIM-Swap Attack

Delfield, a company that provides a security layer for smart contracts to protect investors from fraud and hacks, claimed to have audited Defrost Finance a year ago and identified the smart contract weakness that was exploited in the breach. As per the research by Chainalysis, crypto investors lost over $2.8 billion to rug pullers last year. However, 37% of the more than $7.7 billion in criminal profits generated by cryptocurrency schemes that year came from rug pulls. According to research from blockchain risk monitoring company Solidus Labs, fraudsters distributed more than 117,000 scam tokens until December 1, 41% more than they did in all of 2021. This suggests that the 2022 figure will be greater.

Read Also : Huobi Exchange Hacked: 5,000 ETH ($8m) Lost

With the accusation, the team is unsatisfied, and earlier on December 28, it issued a warning to members of its Telegram channel that it would delete anyone who try to spread the “false narrative” that Defrost team was behind the recent attacks. At the moment, continuing to let the public discussions function like the Wild Wild West is not conducive to moving ahead.

Read Also : Crypto Adoption in Developing Countries 2023

Will put into practice Therefore, after publishing on Medium a few hours later that it has started the process of repaying payments to affected individuals, Defrost shared on Twitter on December 26 that it had been fruitful in recovering every penny stolen in the v1 attack. The Defrost-controlled Ethereum wallet used to facilitate the return of funds now displays that $2.9 million in Ether ETH and $9.9 million in Dai DAI have been returned.

The hacked funds have been returned to #DefrostFinance.

The affected users will very soon be able to claim their assets back.

Details https://t.co/RpDqKAK44y

— Defrost Finance (@Defrost_Finance) December 26, 2022

In recent reports on Defrost Finance, there are a few things we’d like to talk about and we also regret that we are unable to go into more detail, but the community will see that this is a subtle situation and that is helping our users get their money back must be our top priority. This takes preference over all other considerations, it stated.

Read Also:  Jim Cramer Shifts to Bullish Outlook for Bitcoin – Will the Inverse Cramer Curse Still Play Out?

For the Latest Crypto News follow the Coinography and Subscribe our YouTube channel or follow us on social media platforms like Twitter, Facebook, Instagram and Linkedin.

You Might Also Like

0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Get Latest Updates

Latest News

Web Stories

Latest News

0
Would love your thoughts, please comment.x
()
x
Scroll to Top
TON Network Surpasses $140M TVL as Toncoin Price Skyrockets Bitcoin Falls Below $60,000 After Israel’s Strike on Iran Ragnarok Joins Web3 via Ronin and Gravity Collaboration Worldcoin Announces “Human Centric” Blockchain: World Chain Dubai Flood Spurs Blockchain Life 2024 Airdrop ZachXBT Reveals Frauds on Ethereum Layer-2 Networks Winklevoss Twins Invest $4.5M BTC in Bitcoin Soccer Club VeChain and UFC Unveil Tokenized Gloves Collaboration Web3 Credentials Platform Galxe Goes Live with Mainnet Launch El Salvador’s Newest Hilton Leverages Tokenized Bitcoin Debt Shiba Inu Burn Spike Raises Price Over 1300% Impact Concerns GBTC ETF Hindering Bitcoin’s Path to $100,000 Bitcoin News Ethereum Futures ETF with 2x Leverage Filed by Defiance Pump.Fun Boosts Memecoin Market: $5.2M in 38 Days Charles Hoskinson Highlights Cardano’s Progress Despite Criticism Solana DEX Booms, InQubeta Presale Tops $13M Cryptocurrencies to Watch: 16 Promising Options for 2024 Crypto AI Trading Bots: Best Picks for 2024 Cardano’s Top 5 Tokens for April 2024 Investment Crypto Highlights: 12 Best Bitcoin and Crypto Casinos for 2024