Cryptos

Cream Finance plans to reimburse its users for stolen funds

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Cream Finance is a financial protocol that allows users to get reimbursed for flash loan hacking through its platform. The hack cost nearly $ 19,000,000 and took place on August 30, 2021.

Cream Finance offers NeueFrom a post-mortem to massive exploitation of AMP flash loans. Protocol promises to return the stolen Ether and Amp (AMP) coins.

He plans to keep his promise by allocating 20% ​​of all protocol fees until the debt is fully paid. Additionally, the protocol will issue guarantees to all parties to the MPA. It will also include Flexa, the creators of the digital payments network, for debt security.

Crean Finance was the first to be hacked directly, according to the post-mortem report.

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This led to the loss of approximately 2,800 ETH as well as 462 million AMP coin. Cream Finance was able to uncover the root cause of the hack with the help of PeckShield (a blockchain security company).

Protocol discovered that there was an error with its AMP integration methods. Cream confirmed that, although it was disappointing and regrettable, she will be solely responsible for her error.

Cream Finance examines the hack

Cream Finance discovered a similar attack in addition to the exploit on its platform. This small movement is however from an address that has a history of transactions on Binance’s crypto exchange. Cream Finance is currently working with Binance to find this second attacker.

Cream stated that she will work with all authorities to locate the perpetrator. Cream also stated that he will cooperate with law enforcement in prosecuting the attacker using all the force of the law.

The hacker protocol will also pay a 10% bug bounty to the attacker if it is willing to return stolen assets.

Cream also appealed for public assistance in order to identify the perpetrator or provide relevant information to his arrest. The protocol promised a ransom equal to 50% of any funds returned for such assistance.

Cream stopped loan and supply contracts on AMP on August 30, as previously reported. This ends the exploit that allowed attackers to access ETH and AMP worth approximately $ 19 million from assets re-borrowed through 17 transactions.

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The prices of AMP, CREAM, and the native cream have fallen due to the massive exploitation. The AMP value dropped by almost 13%.

CREAM trades sideways at the time of writing| Source: CREAMUSD at TradingView.com

These affected coins also have a steady drop in price since the attack. For example, the price of the CREAM cream token fell 11% over the past seven days. At the time of writing, the token is currently selling at $ 163.08. The AMP is also at $ 0.05275.

Featured image taken from Pixabay. Chart from TradingView.com

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