After recovering the funds lost in a recent flash loan exploitdecentralized leveraged trading platform Defrost Finance plans to return the funds to their rightful owners, according to a new announcement.
In a medium post, Unfreeze highlighted that it will soon be reimbursing the assets to their original holders and will follow a specific process. The process includes converting all Ether (ETH) in stablecoins, such as DAI, at the on-chain market price. Then all stablecoins will be transferred from the Ethereum blockchain to Avalanche.
In addition to this, the team will also perform on-chain data analysis to find out "who owned what" before the attack. After completing the scanning work, the Defrost team mentioned that they will release the data to the public.
Once everything is complete, the team will implement a smart contract that will allow users to claim their assets that are already converted into stablecoins to their original wallet addresses.
Meanwhile, after the exploit, security companies alleged that the project may have slipped away with user funds. Blockchain security firm CertiK described the recent exploit as an "exit scam" and said they tried to contact the team without getting any response. On the other hand, blockchain analytics firm PeckShield has also issued a warning to the community, describing the project as a โrug pullโ and estimating losses at around $12 million.
Related: Hackers Extract $8 Million In Assets From Bitkeep Wallets In Latest DeFi Exploit
On December 21, the decentralized exchange Raydium also announced details of his proposal 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 away with $2 million in digital assets with the attack.
On the same day, the Ankr protocol was able to determine the details of the exploit that caused a loss of $5 million within the platform. According to the team, there was a point of failure in their developer key. Because of this, the team will implement multi-signature authentication that will require the signatures of key custodians.
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