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Cream Finance Lose $130 Million To Hackers

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Cream Finance, an Ethereum DeFi Protocol, was exploited yesterday in a fit that allows hackers to chart away with $130 million from its pool. Peckshield a blockchain analytic company was the first to reveal when it discovered a flash loan had exploited the platform. This is the third attack the platform has experienced since its launch, having lost $36 and $29 million previously.

Cream Finance, an Ethereum -based lending and borrowing protocol, suffered an attack that allowed the hackers to extort $130 million worth of ether and ERC-20 tokens. According to Slowmist, a blockchain security organisation, the hack combined 2,760.22 either and 60 tokens which also includes HBTC, USDT, BUSD among others.

The attack was inflicted in the form of a series of flash loans in a very unusual way, which has made some believe that the attacker is an experienced defi developer.

Another blockchain company, Peckshield, disclosed the news linking the flash loan that caused the hack through Twitter. The firm suspected the attack was possible because of a bug in a price oracle. The Cream Team promptly acknowledged the situation, informing users about the hack. They also stated: 

“With the help of friends from Yearn Finance and others in the community, we can identify the vulnerabilities and patch them. In the meantime, we’ve paused our v1 lending market on Ethereum and we’re in the process of putting together a post-mortem review.”

However, the Cream Finance team has since been putting effort into trying to communicate with the hackers, offering to give them 10% of all the tokens taken away. This strategy is known to have worked for some protocols that have been hacked in the past. Yet, no response has been received.

Cream Finance has had a rather bad reputation of being hacked, having been exploited three times this year. This time will probably be the last as the loss is bigger than the previous two combined.

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Data Scientist, Tech Enthusiast and a Crypto Lover