The total value of funds locked in Defrost Finance had risen from around $13 million to $93,000 as of December 25, according to data from Defi Llama.
Project Defrost Finance said it was hacked on Dec. 23, although blockchain security firm Peckshield, citing Community Intel, said the hack may actually have been a toss that got away with 12 million. of dollars.
In a Twitter thread posted on December 25, the Defrost team said a flash loan was used in an initial attack to drain funds from its V2 product. A second major attack used the proprietary key to exploit a V1 exploit. The protocol, which offers leveraged trading on the Avalanche blockchain, did not specify how much was stolen.
“1/4 The Defrost team has been working around the clock to learn more about the events of the past 48 hours.”
Peckshield’s analysis showed that the attack used a fake token as well as manipulated prices.
A rug pull can occur when developers create and set up a liquidity pool and then withdraw the funds after investors purchase the associated token. The total value of committed funds in Defrost Finance, which peaked at $95 million in February, is around $13 million in recent weeks, according to data from Defi Llama. On December 25, the value fell below $93,000.
If the attack is rull pull, that’s very unusual. Normally, the team behind the program is silent and can no longer be contacted.
DeFrost Finance said in a tweet that it was ready to negotiate with the people behind the attack for a return of funds.
DeFiYield, which provides a security layer for smart contracts to help investors avoid fraud or hacking alongside a cross-chain digital management platform, said it audited Defrost Finance there. a year ago and intelligence used in hacking contract vulnerability. Underline.
“⚡️ We have notified the DeFi community of the @Defrost_Finance smart contract vulnerability being used to overcharge its users.
1 year ago, we subjected Defrost to an audit.
Audit link: https://t.co/u2JBm7zAq8
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According to a report by Chainalysis, crypto investors lost over $2.8 billion to shove draws last year. These accounted for 37% of total illicit crypto scam revenue that year, totaling over $7.7 billion. The number for 2022 will likely be higher. A report from Solidus Labs shows that scammers deployed over 117,000 scam tokens as of December 1, up 41% from all of 2021.
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