DeFi protocol Defrost_Finance said it was hacked last week, though some observers are suggesting the attack may have been a $12 million rug pull. By sheldonreback
protocol Defrost Finance said it was hacked Dec. 23, though blockchain security firm Peckshield, citing “community intel,” said the exploit may have been a rug pull that made off with $12 million.
In a tweet thread posted Dec. 25, the Defrost 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.can occur when developers create and establish a liquidity pool and then remove the funds after investors have bought the related token.
DeFiYield, which offers a security layer for smart contracts to help investors avoid getting scammed or hacked alongside a cross-chain digital asset management platform, said it conducted an audit of Defrost Finance a year ago, and highlighted the smart contract vulnerability used in the hack., according to a report by Chainalysis. Rug pulls accounted for 37% of the over $7.7 billion in total illicit revenue from crypto scams that year.
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