DeFi protocol Defrost Finance suffered a hacker attack on December 23. According to PeckShield experts, the company has lost $12M as a result of the attack.
The project developers initially reported an attack on the second version of the V2 protocol using a “flash loan.”
However, on December 26, the Defrost Finance team announced the stolen funds were returned and the project is preparing to distribute them among users.
According to PeckShield, a hacker exploited the lack of a reentry block. By manipulating the price in the LSWUSDC liquidity pool, the attacker mined about $173,000.
According to Defrost Finance, the attacker carried out a repeated attack on the V1 protocol using the received owner key.