Decentralized leverage-trading platform Defrost Finance plans to refund the cash to their legitimate owners after retrieving the funds lost in a recent flash loan exploit worth about $12M.
Defrost said in a Medium post that it would soon be returning the assets to its original owner and will be using a certain procedure. All Ether will be converted, at the on-chain market pricing, into stablecoins like Dai. The Ethereum blockchain will then be used to transfer all stablecoins into Avalanche.
In addition to this, the team will analyze on-chain data to determine “who possessed what” before the assault. The Defrost team said that they would be making the data available to the public after finishing the scan job.
Following the completion of all tasks, the team will implement a smart contract that will enable users to recover their assets that have already been converted into stablecoins and return them to their original wallet addresses.
Security companies said that the project may have vanished with customer payments in the meanwhile, after the exploit. The new vulnerability was called an “exit scam” by blockchain security company CertiK, who also claimed that they tried to contact the team but received no answer.
On the other side, the community was also forewarned by the blockchain analytics company PeckShield, which called the initiative a “rug pull” and pegged the losses at around $12 million.
Decentralized exchange Raydium also unveiled specifics of its planned compensation scheme for anybody hurt by a recent hack due to a flaw in the platform’s code on December 21. Its team claims that the hackers were successful in escaping with digital assets valued at $2 million.
Ankr protocol was able to identify the specifics of the exploit that led to a platform loss of $5 million on the same day. The team said that its developer key had a point of failure. As a result, the team will put multi-sig authentication into place, which calls for signatures from key custodians.
