Defrost finance plans to refund users following a $12M hack | The Financial Express

Defrost finance plans to refund users following a $12M hack

Security companies claimed that the project may have vanished with user funds in the meantime, following the exploit.

The recent exploit was called a "exit scam" by blockchain security company CertiK, who also claimed that they tried to contact the team but received no response.
The recent exploit was called a "exit scam" by blockchain security company CertiK, who also claimed that they tried to contact the team but received no response.

Decentralised leverage-trading platform Defrost Finance plans to return the funds to their legitimate owners after recovering the funds lost in a recent flash loan exploit, as reported by Cointelegraph.

According to Cointelegraph, Defrost noted in a Medium post that it will soon be returning the assets to their original holders and will be using a particular procedure. All Ether will be converted at the on-chain market rate, into stablecoins like DAI. The Ethereum blockchain will then be used to transfer all stablecoins into Avalanche. 

The team will, however, after the completion will deploy a smart contract enabling users to reclaim their assets which are already converted into stablecoins to their original wallet addresses, Cointelegraph explained. 

Security companies claimed that the project may have vanished with user funds in the meantime, following the exploit. The recent exploit was called an “exit scam” by blockchain security company CertiK, who also claimed that they tried to contact the team but received no response. On the other hand, the community was also forewarned by the blockchain analytics company PeckShield, which called the project a “rug pull” and pegged the losses at about $12 million.

(With insights from Cointelegraph)

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First published on: 27-12-2022 at 14:40 IST