Defrost Finance, a DeFi protocol built on the Avalanche blockchain that offers leveraged trading, recently released a blog post that contained some “good news” for users that were affected by the Christmas Day hack that drained the project of around $12 million worth of crypto assets.
According to the latest update shared by the team managing the decentralized finance venture, the still-to-be-identified cybercriminal responsible for the hack seemed to have had a change of heart and returned all the funds he siphoned off during the breach.
As a means of confirmation for the bizarre turn of events, Defrost Finance showed to the public the wallet address that now contains the returned assets which include $3 million worth of ETH tokens and 9.9 million DAI.
The project remains mum as to the details of the recovery or return of the funds and has not released any form of communication with regard to the particular matter, failing to address some speculations that it might have paid a bounty to the cyber attacker.
Last Sunday using their Twitter account, the Defrost Finance team said its V2 product was targeted and drained of funds via a flash loan attack.
The project did not say how much exactly was stolen from its coffers, but other data later revealed that its total value locked (TVL), which stood at $13 million in recent weeks, plummeted to $93,000 on the same day the attacks happened.
PeckShield and Certik, both well-established blockchain security firms, weighed in on the development, saying the incident might have been a case of a rug pull – also known as an exit scam where developers create a liquidity pool but remove the funds and disappear after investors have bought a certain related asset.