After recovering funds lost in a recent flash loan exploit, decentralized leveraged trading platform Defrost Finance plans to return the funds to their rightful ownersaccording to a new announcement.
In a Medium post, Defrost stressed that it will soon refund the assets to their original holders and that it will follow a specific process. The process includes the conversion of all Ether (ETH) into stablecoins, such as Dai (DAI), at the on-chain market rate. Next, all stablecoins will be transferred from the Ethereum blockchain to Avalanche..
Besides, the team will also perform on-chain data analysis to find out “who owned what” before the attack. After completing the scanning job, the Defrost team mentioned that they will release the data to the public..
Once everything is complete, the team will deploy a smart contract that will allow users to claim their already converted stablecoin assets to their original wallet addresses.
For his part, following the exploit, security firms claimed that the project may have run off with user funds. Blockchain security firm CertiK described the recent exploit as an “exit scam” and claimed that it has tried to contact the team without getting a response. Secondly, Blockchain analytics firm PeckShield has also issued a warning to the community, describing the project as a “rug-pull” and estimating losses at about $12 million..
On Dec. 21, decentralized exchange Raydium also announced details of its proposed compensation plan for victims of a recent exploit due to a vulnerability in the platform’s code.. According to his team, the hackers were able to get hold of $2 million worth of digital assets with the attack.
The same day, Ankr’s protocol was able to determine the details of the exploit that caused a $5 million loss on the platform. According to the team, there was a point of failure in their developer key. Because of this, the team will implement multi-sig authentication that will require signatures from the custodians of the keys..
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