CRYPTO

Cream Finance Flash Loan Hack seems to have suffered huge losses


Decentralized lending platform Cream Finance appears to have been hit hard on Wednesday, with an attacker stealing ্যের 100 million worth of funds through a large flash loan attack.

Blockchain data analytics company Pexhield on Wednesday identified the first flash loan. The compromised funds were mainly tokens providing cream liquidity, as well as other etherium-based tokens.

During a flash loan attack, an attacker exploits weak smart contracts to create opportunities for their own arbitration. Typically, this is done by changing the relative value of a trading pair and flooding the contract using their lent tokens.

Cream Finance has been regularly targeted by attackers, as evidenced by the োক 19 million flash loan hack of the protocol in August. The Quentelligraph reported at the time that the attack was facilitated by a reentry bug introduced by Amp cryptocurrency, an Ethereum-based token designed to parallel digital payments in Flex. At the time of writing, the total value of the cream, Locked, or TVL, was more than $ 1.5 billion, according to industry sources.

Cream Finance TVL. Source: Diphillama.With

Cream Finance forums seem to have been dragged down in the wake of the attack, although the protocol did Informed Flash loans to his Twitter followers are being investigated. The Twitter thread is full of angry feedback about Cream’s poor track record in protecting user funds.

Related: Hackers use MFA error to steal from 6,000 Coinbase customers – report

Although Decentralized Money, or DeFi, has been praised for revolutionizing traditional financing and promoting financial inclusion, the industry has a poor track record in terms of consumer protection. A comprehensive list of DeFi attacks revealed 63 exploits as of Sept. 16, according to CryptoSec, including about $ 1.2 billion in lost funds. The latest exploitation of cream finance will be one of the biggest.

Cream Finance’s Cream Token has crashed in the news, falling more than 26% to 5 115.47, according to Quentelgraph Markets Pro.