Defrost Finance, a protocol for decentralised finance, said it was hacked on December 23, but blockchain security firm Peckshield speculated, citing “community intel,” that the exploit could have been a rug pull for $12 million. The Defrost team stated in a tweet thread posted on December 25 that the first attack used a flash loan to drain funds from its V2 product. A larger attack exploited V1 using the owner key. The protocol, which provides leveraged trading on the Avalanche blockchain, did not specify the amount taken. According to Defi Llama data, the total value of funds locked on Defrost Finance, which peaked at $95 million in February, has dropped to around $13 million in recent weeks. On December 25, it had dropped to less than $93,000.