Another cryptocurrency platform hacked — losses of cryptocurrency owners exceed $ 12 million

Defrost Finance, a decentralized, leveraged trading platform on the Avalanche blockchain, has announced that both its versions — Defrost V1 and Defrost V2 — are being investigated for hacking. The announcement came after investors reported losing their Defrost Finance (MELT) and Avalanche (AVAX) tokens from MetaMask wallets.

A few minutes after several users complained about the unusual loss of funds, Defrost Finance core team member Doran confirmed that Defrost V2 had been hit by an instant (flash) credit attack. At the time, the platform believed that Defrost V1 was not affected by the hack and decided to shut down V2 for further investigation.

PeckShield blockchain researchers found that the hacker manipulated the LSW/USDC price, resulting in a profit of approximately $ 173,000. After further analysis, PeckShield’s investigation revealed:

«Our analysis indicates that a fake collateral token was added and a fake price oracle was used to eliminate current users. Losses are estimated at over $ 12 million.»

Until further notice, investors are advised to stop using Defrost Finance. The internal team is currently investigating the situation and will contact users through official channels.