Ethereum DeFi Protocol Cream Finance succumbs to $ 130 million flash loan hack

Cream Finance is the latest Ethereum DeFi protocol to suffer another hack. The attackers had used a flash loan attack and took away $ 130 million. Cream Finance confirmed the attack via Twitter Publish where the project revealed that they were investigating the cause of the hack. The exploit exposed vulnerabilities in the protocol’s loan pools, which had to be closed to protect users.

Fix vulnerabilities

A follow-up tweet from the project had confirmed that the attackers had indeed recouped around $ 130 million from the hack. The hack took place on October 27 at 1:54 p.m. UTC and only affected the lending cash pools. All other markets were not affected as it seemed that vulnerabilities were only present in these pools.

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Another tweet assured the community that the vulnerability had been patched with the help of Yearn.Finance. V1 loan markets on Ethereum remain on hiatus pending a post-mortem review from the team.

However, this is an important hack for the protocol. The funds were transferred across 68 different assets on the protocol, the majority being Cream Liquidity Pool tokens and ERC-20 tokens. PeckShield, a blockchain security company, initially sounded the hacking alarm. He drew the attention of the Cream Finance team to blockchain data which showed more than $ 130 million had been sent to two different wallets.

Cream Finance identified the portfolios where the author had transferred the tokens. Although there was no mention of the confirmation of the identity of the attackers. And given the history of hacking in the crypto space, their identity will most likely remain anonymous.

Previous DeFi Hacks

This is not the first time that Cream Finance has succumbed to an exploit on its protocol. In fact, this is the third successful achievement of the Cream Finance protocol. The first hack took place in February this year when attackers managed to get rid of $ 37.5 million in coins. Subsequently, the price of the cream had dropped by 20% as news of the hack circulated.

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Then, in August, Cream Finance suffered yet another hack. This time, the protocol lost $ 29 million to the attackers. The attackers had exploited a bug introduced during the introduction of the amp token in the Cream Finance protocol. Blockchain security company Peckshield had also reported this exploit and called attention to the bug.

The latest Cream Finance is the third biggest DeFi feat in history. Poly Network and Compound finance still hold the record for 1st and 2nd highest DeFi achievement respectively. Following the hack, the price of CREAM fell by 27%. The digital asset is still struggling to recover as the community waits for further updates from the team.

Total DeFi market cap at $151 billion | Source: Crypto Total DeFi Market Cap on TradingView.com
Featured image from CryptoSlate, chart from TradingView.com


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