Protocol for decentralized finance From the hacker who was responsible for the V1 flash loan exploit, Defrost Finance has recovered money.
Defrost stated in a recent blog post that it would soon begin scanning the on-chain data to return the funds to their proper owners. The platform promised that the process would be “concluded fairly swiftly,” but noted that distribution might take some time because different users’ ratios of assets and debt varied.
“Please be aware that the entire operation will be managed transparently using a new contract and that will allow the addresses of affected users to claim their fair share.”
- All Ether will be converted into stablecoins like Dai at the on-chain market rate as part of the process, and those stablecoins will then be transferred from the Ethereum blockchain to Avalanche.
- Details will then be made public after the team scans the on-chain data “to find out who owned what before the hack.”
- Defrost also intends to implement a smart contract that will enable users to send stablecoins to the same addresses to claim their assets back.
- According to the platform, its V2 product was the target of its first attack, which involved a flash loan and the theft of funds. The owner key was used to exploit V1 in a second, more significant attack.
- The initial loss was pegged at $12 million.
- Peckshield, a blockchain investigator, hypothesised that it might be a situation of rug pull