Cream Finance Lost $25 Million In Recent Loan Hack

SYNOPSIS

  • Cream Finance has been hacked with more than 418 million AMP token.
  • The overall value of the exploited digital tokens was roughly $25 million at the time of the hack
  • The news of the hack caused the price of the platform’s native token, CREAM, to fall.

CEO of Cream Finance, Matiss Ansviesulis

Cream Finance, a decentralised finance (DeFi) lending and borrowing platform, has fallen victim to fraudsters, with more than 418 million AMP, Flexa Network’s native currency, and 1,308 Ethereum stolen in a recent exploit.

The overall value of the exploited digital tokens was roughly $25 million at the time of the hack, but AMP values quickly plummeted by 15%, bringing the cash value of the attack to $18.8 million as of press time.

Cream Finance announced in a statement today that the hacker took advantage of the AMP token in the protocol by making 17 consecutive re-borrowing requests before updating the first borrowing order.

By pausing supply and borrowing on the AMP token, the platform was able to stop the exploit. It also stated that none of the other markets had been harmed.

This isn’t the first time that Cream Finance has been hacked. Cream Finance lost $37.5 million in bitcoin earlier this year as a result of Alpha Finance’s abuse.

CREAM FINANCE AMONG TOP DeFi PROTOCOLS

Cream Finance is one of the top 20 DeFi protocols, with $658 million in assets locked up. The system, which is a fork of Compound, has gotten a lot of interest since it gives users access to a lot more cryptocurrency marketplaces.

Furthermore, the news of the hack caused the price of the platform’s native token, CREAM, to fall. Flash loans let users to borrow and return funds in the same transaction, and they’ve become a regular way for hackers to break into DeFi platforms’ security.

Hackers utilised a 500 Ethereum flash loan to exploit a’reentrancy issue’ on the Flex Network, according to crypto-security firm PeckShield.

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