Defrost Finance was hacked Dec. 23. In a tweet posted Dec. 25, the Defrost team said that the first attack used flash loans to drain funds from V2 products. The second uses the owner key to take advantage of the V2 product.
1/4 The Defrost team has been working around the clock to find out more details concerning the events of the past 48 hours.
A thread
— Defrost Finance
(@Defrost_Finance) December 25, 2022
Peckshield Analysis It shows that the attack uses fake collateral tokens along with price manipulation.
The total value of TVL, or funds locked in Defrost Finance, peaked at $95 million in February. And it’s currently at $13 million in the past few weeks. According to Defi Llama, TVL has dropped toLess than $93,000on the 25th of December
If the attack is a rug pull from the developer side This indicates that this is an abnormal attack. As the team behind Rug Pulls is usually quiet and unable to be contacted, however, Defrost Finance’s team continued to say in a tweet thatwilling to negotiatewith those behind the attack to return the money.
The Defrost team is willing to negotiate with the hacker(s).
We are willing to discuss sharing 20% (negotiable) of the funds in exchange for the bulk of assets and are calling on the hackers to contact us asap.
— Defrost Finance
DeFiYield said it conducted an audit of Defrost Finance last year. and highlighted the vulnerabilities of smart contracts used in hacking.
We have warned DeFi Community about the smart contract vulnerability @Defrost_Finance used to rug pull its users.
1 year ago we performed an audit on Defrost.
Audit link: https://t.co/u2JBm7zAq8
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— DeFiYield
Web 3 Security (@DefiyieldSec) December 25, 2022
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