Defrost Finance offers 20% payment to hackers as CertiK claims project is an 'Exit Scam'

On Dec. 26, blockchain information steadfast CertiK issued a informing alleging that Defrost Finance, a decentralized leveraged trading level connected the Avalanche Blockchain, is an "Exit Scam." In supporting the decision, CertiK wrote: 

"On 24 December we person seen an #exitscam connected @Defrost_Finance. We person attempted to interaction aggregate members of the squad but person had nary response. The squad are not KYC'd but we are utilizing each the accusation that we bash person to assistance with authorities."

The anterior day, Defrost Finance suffered a flash indebtedness onslaught that drained protocol users of $12 cardinal successful assets. Immediately aft the exploit, blockchain analytics steadfast PeckShield besides issued a informing alleging that the cognition was a "rugpull": 

"We received assemblage intel informing the rugpull of @Defrost_Finance.Our investigation shows a fake collateral token is added and a malicious terms oracle is utilized to liquidate existent users. The nonaccomplishment is estimated to beryllium >$12M."

In a little post-mortem analysis, task developers said that hackers besides managed to bargain the proprietor cardinal for a overmuch larger onslaught connected its V1 protocol than the flash indebtedness exploit. Defrost has since offered "sharing 20% (negotiable) of the funds successful speech for the bulk of assets and are calling connected the hackers to interaction america asap."

After posting an Ethereum (ETH) wallet code connected its societal page, adjacent to $3 cardinal worthy of integer assets person been transferred determination astatine the clip of publication. It is unclear if specified transactions were related to the stolen assets.

CertiK's Skynet alert for DeFrost | Source: CertiK

This is simply a processing communicative and volition beryllium updated accordingly.