{"id":531931,"date":"2022-12-28T07:04:47","date_gmt":"2022-12-28T04:04:47","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/defrost-finance-breaks-silence-on-exit-scam-accusations-denies-rug-pull\/"},"modified":"2022-12-28T07:04:47","modified_gmt":"2022-12-28T04:04:47","slug":"defrost-finance-breaks-silence-on-exit-scam-accusations-denies-rug-pull","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/defrost-finance-breaks-silence-on-exit-scam-accusations-denies-rug-pull\/","title":{"rendered":"# Defrost Finance breaks silence on \u2018exit scam\u2019 accusations, denies rug pull"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3873a21a4c2\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3873a21a4c2\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/defrost-finance-breaks-silence-on-exit-scam-accusations-denies-rug-pull\/#%E2%80%9D_Defrost_Finance_breaks_silence_on_%E2%80%98exit_scam_accusations_denies_rug_pull_%E2%80%9C\" >&#8221; Defrost Finance breaks silence on \u2018exit scam\u2019 accusations, denies rug pull &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Defrost_Finance_breaks_silence_on_%E2%80%98exit_scam_accusations_denies_rug_pull_%E2%80%9C\"><\/span>&#8221; Defrost Finance breaks silence on \u2018exit scam\u2019 accusations, denies rug pull &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-71d2d00b>Defrost Finance, the decentralized trading platform that suffered a $12 million exploit in the days leading up to Christmas, has denied allegations that it had \u201crugged\u201d its users as part of an elaborate \u201cexit scam.\u201d<\/p>\n<p>On Dec. 23, the platform announced it suffered a flash loan attack, leading to the draining of user funds from its v2 protocol. One day later, another incident saw a hacker steal the admin key\u00a0for a second \u201cmuch larger\u201d attack on the v1 protocol. <\/p>\n<p>It\u2019s understood the attacker or attackers conducted the flash loan attack by adding a fake collateral token and a malicious price oracle to liquidate users.<\/p>\n<p>Observers, including blockchain security firms <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/peckshield\/status\/1606767457099993088\">Peckshield<\/a> and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CertiKAlert\/status\/1607300101030002689\">CertiK<\/a>, as well as asset management platform <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/DefiyieldSec\/status\/1607868830096801794\">DeFiYield<\/a>, have suggested based on \u201ccommunity intel\u201d that members of the team may have been behind the \u201cexit scam\u201d \u2014 given the fact that an admin key was required to perpetrate the exploit. <\/p>\n<p>However, in an exclusive statement to Cointelegraph on Dec. 28, the team behind Defrost Finance broke its silence on the accusations, stating: <\/p>\n<blockquote><p>\u201cWe deny the accusations that the team rugged users. A compromised key does not equate to a rugpull, as much as the episode may raise doubts among the public.\u201d<\/p><\/blockquote>\n<p>Defrost made two key arguments to deny its involvement. <\/p>\n<p>Firstly, Defrost argued that if they had planned to orchestrate a rug pull, they would\u2019ve done it months ago when its total value locked (TVL) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Defrost_Finance\/status\/1493850873780649984\">neared<\/a> $200 million.<\/p>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/defillama.com\/protocol\/defrost\">According<\/a> to DefiLlama, Defrost Finance\u2019s TVL had fallen to just $13.14 million on Dec. 23, the day of the first attack. <\/p>\n<blockquote><p>\u201cAnyone behind a rugpull would have probably defrauded investors when our TVL was 15 times what it is today.\u201d<\/p><\/blockquote>\n<p>Secondly, Defrost argued that if they had been the perpetrators they would have \u201cfled\u201d long ago, which they haven\u2019t done. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">1\/4<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Defrost?src=hash&amp;ref_src=twsrc%5Etfw\">#Defrost<\/a> has managed to recover all funds taken during the the V1 hack.<\/p>\n<p>This is how we will refund the investors.<\/p>\n<p>A thread <\/p>\n<p>\u2014 Defrost Finance  (@Defrost_Finance) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Defrost_Finance\/status\/1607633033825247233?ref_src=twsrc%5Etfw\">December 27, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>\u201c[Anyone] anticipating the inevitable attention from the crypto community would have fled long ago. Yet here we are, working to get the funds back to their rightful owners,\u201d it said. <\/p>\n<p>Defrost Finance\u2019s statement came just hours after decentralized finance investment platform DeFiYield in a Medium blog post on Dec. 27 again <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/medium.com\/@DeFiYieldSec\/exclusive-the-defrost-team-rugpulled-12m-7m-999b24c13f47\">accused<\/a> Defrost Finance of \u201crug pulling\u201d its users.<\/p>\n<p>DeFiYield pointed to on-chain data that it claimed suggested the creator of the multisig wallet was the same address that requested and then later <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>roved the transactions that inserted the malicious source oracle that liquidated users.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">We&#8217;ve done an Exclusive On-Chain Investigation on the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Defrost_Finance?ref_src=twsrc%5Etfw\">@Defrost_Finance<\/a>&#8216;s $12M &#8220;Exploit&#8221;<\/p>\n<p>We found the connection between Defrost Finance and another project that has Rug Pulled $7M in 2021 &#8211; <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Phoenix__PHX?ref_src=twsrc%5Etfw\">@Phoenix__PHX<\/a><\/p>\n<p>They have the same developers.<\/p>\n<p>EXPOSING <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Defrost_Finance?ref_src=twsrc%5Etfw\">@Defrost_Finance<\/a> LIES <\/p>\n<p>1\/18  <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/PfGyVNsoQ4\">pic.twitter.com\/PfGyVNsoQ4<\/a><\/p>\n<p>\u2014 DeFiYield \ufe0f Web 3 Security (@DefiyieldSec) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/DefiyieldSec\/status\/1607868096185831424?ref_src=twsrc%5Etfw\">December 27, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>It also alleged the developers behind Defrost Finance were the same as those of Phoenix Finance (FinNexus) which was <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/Phoenix__PHX\/status\/1394319411947864069?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1394319411947864069%7Ctwgr%5E36611eb72f5c4f59fe3753b896a412fd43b7cb72%7Ctwcon%5Es1_&amp;ref_url=https%3A%2F%2Fcryptoslate.com%2Fdefi-tool-finnexus-fnx-plunges-by-90-after-hack-some-allege-an-inside-job%2F\">exploited<\/a> for $7.6 million in May 2021 in what some have also speculated was an \u201cinside job.\u201d<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Here&#8217;s how Defrost Finance plans to refund users following $12M hack<\/em><\/strong><\/p>\n<p>Defrost said it regrets being unable to share more details about the attack, as its priority has been helping users retrieve their funds. <\/p>\n<p>&#8220;There are several issues that we would like to address in recent reports concerning Defrost Finance. We regret we cannot get deep enough into some details \u2014 but surely the community will understand this is a sensitive matter and our priority must be to help our users retrieve their funds. All other concerns are secondary to this,\u201d it said.<\/p>\n<p>The team is certainly unhappy about the allegations and earlier on Dec. 28 <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.me\/Defrost_Finance\/63083\">warned<\/a> members of its Telegram group that it will ban members that attempt to perpetrate the \u201cfalse narrative\u201d that the Defrost team is responsible for the recent attacks. <\/p>\n<p>\u201cAt this point, it\u2019s not conducive to moving forward to continue allow [sic] the public chats to operate like the Wild Wild West. Will be implementing stricter protocols.\u201d<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-12\/f87c1f1f-736d-481e-ba76-a1c77900f2f5.PNG\"><figcaption style=\"text-align: center;\"><em>A post on Defrost Finance&#8217;s Telegram group by a core team member. Source: Telegram<\/em><\/figcaption><\/figure>\n<p>On Dec. 26, Defrost announced on <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> it had managed to recover all the funds taken in the v1 hack, sharing in a <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/medium.com\/@Defrost_Finance\/hacked-funds-returned-to-defrost-71b9d2d1b458\">post<\/a> on Medium hours later that it has begun the process of returning funds to affected users. <\/p>\n<p>The Ethereum wallet controlled by Defrost that is being used to facilitate the return of funds currently <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/etherscan.io\/address\/0x5Ad30D7Ec1Ff9D95031E2b4ec2698Df29262867B\">shows<\/a>\u00a0that $2.9 million of Ether (ETH) has been returned, along with $9.9 million worth of Dai (DAI).<\/p>\n<p>\u201cThis will take a little time since we need to map who had what and where, but the wheels are turning fast and the entire process will be managed through smart contracts. It will be fully transparent and fairly swift,\u201d Defrost told Cointelegraph in its recent statement. <\/p>\n<p>No word was given about the v2 protocol as of yet, however.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"crypto_biz\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/defrost-finance-breaks-silence-on-exit-scam-accusations-denies-rug-pull\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Defrost Finance breaks silence on \u2018exit scam\u2019 accusations, denies rug pull &#8220; Defrost Finance, the decentralized trading platform that suffered a $12 million exploit in the days leading up to Christmas, has denied allegations that it had \u201crugged\u201d its users as part of an elaborate \u201cexit scam.\u201d On Dec. 23, the platform announced it&#8230;<\/p>\n","protected":false},"author":1,"featured_media":531932,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2022-12\/ba58b268-f61e-4644-86a7-e746a3a99890.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74868,74882,70944,71101],"class_list":["post-531931","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-defi","tag-hacks","tag-hackers","tag-scams"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/531931","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=531931"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/531931\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/531932"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=531931"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=531931"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=531931"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}