Defrost Finance, a decentralized leveraged trading platform on Avalanche blockchain, announced that both of its versions — Defrost v1 and Defrost v2 — are being investigated for a hack. The announcement came after investors reported losing their staked Defrost Finance (MELT) and Avalanche (AVAX) tokens from the MetaMask wallets.
Moments after a few users complained about the unusual loss of funds, Defrost Finance’s core team member Doran confirmed that Defrost v2 was hit with a flash loan attack. At the time, the platform believed that Defrost v1 was not impacted by the hack and decided to close down v2 for further investigation.