Avalanche’s DEX loses $12 Million In a Hack; are AVAX Holders The Next to be Snowbound?

A DEX on the Avalanche network, known as Defrost Finance, was compromised by an assault from a hacker. According to data given by PeckShield Inc, a Crypto security investigation firm, the hacker was able to pull off $12 million.

The unfolding of everything…

The attacker managed to add a fake token as collateral, then, at that point, continued to utilize a fake price oracle. A price oracle is a source of price data streamed onto a blockchain. Using these tools, the at managed to liquidate $12 million worth of user funds.

This was not the first attack that had happened on Defrost Finance. On 23 December, Defrost Finance was hacked and the hacker was able to use flash loans (which is an uncollateralized loans) to take funds worth $173,000. It is dubious whether these attacks were done by something very similar or various hackers.

The hacker was willing to negotiate with the Defrost Finance team.
The team at Defrost Finance will be willing to pay up to 20% of the funds to the hacker.
If the hacker gives back the remaining funds, this would be done.

The present status of Avalanche

The TVL collected by Avalanche could be affected by these concurrent attacks.
According to DefiLlama, the TVL has reduced over the last month.

The cuFurthermore, the income generated by Avalanche declined also. Avalanche’s income fell by 41.3% over the most recent 30 days, in light of token terminal’s data. At the hour of composing, the combined income generated by Avalanche stood at $3.8 million.rrent territory of Avalanche

According to data given by AVAXNFTSTATS, it was seen that the top 5 NFT collections on the NFT network saw a huge decrease in terms of volume. Moreover, well known AVAX NFT collections, for example, chikn and FarmLand began to lose interest from NFT investors.

The attacks on protocols in Avalanche’s ecosystem coupled with the declining interest in its NFTs could affect Avalanche’s growth adversely sooner rather than later.

At the hour of composing, $AVAX was trading at $11.69 and its price had expanded by 0.45% as of now.