Cryptos

Cream Finance Loses $25 Million in Blitz Loan Attack

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PeckShield tweeted about the new Cream Finance hack. The flash lending attack has been launched by the blockchain security company on the decentralized financial lending protocol and borrowing protocol.

PeckShield explained the attacker used a 500 Ethereum flash-loan to hack the system. This was used for infiltrating a Flex network smart-contract reentry bug. Sub-secured flash loans are usually repaid in one transaction.

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Cream Finance, a DeFi protocol to loan loans, allows users the opportunity to earn interest on their deposited assets. Cream Finance is a fork from the Compound protocol. However, it works very differently to Aave or Compound. There are many other markets available for digital assets that are not listed on the platform.

Cream Finance was the victim of an attack that involved 1,308 Ethereum and more than 418 million AMPs, which is the native token of Flexa network. PechShield reports that Ethereum records indicate that more $ 6 million was hacked around 5:44 UTC.

Cream Finance is another DeFi protocol hacked 2021

The Cream Finance team also includes members. ConfirmedThe authenticity of this hacking report. The members began working with PeckShield after reporting on Discord Channel.

The hack was discovered by the team in the CREAM marketplace on the Ethereum Blockchain. The team also revealed that they did this by re-entering a contract using the AMP token.

AMP’s value dropped 15% in less than an hour to $ 0.05 as of this writing. Cream Finance’s native token, called CREAM, also saw a drop of about 6%.

However, ETH currently stands at $ 3,190.46. This is a slight drop over the past 24hrs. Crean Finance hack totals more than $ 25,000,000 According to the hackers’ address, they currently have $ 18.8 millions.

Cream Finance is down 6% in the midst of hack.| Source: CREAMUSD on TradingView.com

The Cream Finance team ended all losses. The team claimed that they are now free from borrowing AMP and sourcing AMP. He also admitted that the piracy had not affected any other market. Eason Wu, the protocol’s production manager, leaked the information to Discord.

Remember that Cream Finance had suffered a massive hack in the earlier part of the year. The hack led to the theft of $ 37.5 millions in digital assets. The report states that Alpha Finance was exploited by the previous hack.

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Flash loans remain one of the most controversial features in decentralized finance. Because there is no collateral required for loans, they are easily hacked. This is why hackers and flash loan attacks have been so common.

A similar incident occurred when the Bilaxy crypto-exchange was hacked on August 28. The hack compromised 295 ERC-20 tokens in a large hot wallet. The exchange also suffered a Liquid hack that occurred on August 19. This resulted in a loss around $ 100,000,000.

Featured image taken from Pixabay. Chart from TradingView.com




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