On Wednesday, the panel behind Cream Finance has declared that the decentralized finance (DeFi) granting and borrowing platform has lost an amount of massive $130 million to hackers in cryptocurrencies.
It was written by the official Twitter handle of the DeFi platform “Our Ethereum C.R.E.A.M. v1 lending markets were exploited and liquidity was removed on October 27, 1354, UTC,”.
Misuse of Flash loans has become very common
The attack was put into effect with the use of flash loans that do not seek the borrowers to hand out with collateral provided that they repay the entire amount in a single lump-sum payment. Taking advantage of Flash loans has become very frequent in violating the securities of DeFi platforms.
The attacker drew out cryptocurrencies into one crypto address which was nearly worth about $92 million, while the remaining $23 million into another, together with certain other pocket-sized transactions. Afterward, the funds were shifted to several other digital wallets.
As per the report of the security firm Peckshield, the attacker had managed to make money by performing this unlawful act of nearly $117 million.
The dollar Value of CREAM declined by 25 percent
The maximum of the deceived money was in Cream LP tokens and other ERC-20 tokens. Above all, the event affected the dollar value of CREAM adversely and resulted in a decline by more than 25 percent, that too only within the last 24 hours.
Our Ethereum C.R.E.A.M. v1 lending markets were exploited and liquidity was removed on October 27, 1354 UTC. The attacker removed a total of ~$130m USD worth of tokens from these markets, using this address: https://t.co/17sPIDpCmr
No other markets were impacted.
— Cream Finance 🍦 (@CreamdotFinance) October 27, 2021
The panel behind the DeFi project has granted assurance to us that they are now detecting the susceptibilities in the protocol and working to fix them up.
One of the Largest DeFi Hacks
The recent attack on Cream Finance has become the third biggest attack in terms of the fiat value deceived funds on any DeFi platform. Although, let us clarify that this is not the first attack on the lending platform.
The platform had already lost more than 418 million AMP by the end of August, which is Flexa Network’s native token, and in addition to that, 1,308 Ethereum in another attack. At the time of the fraud, the worth of the cryptos was nearly $25 million. In February, the platform missed another $37.5 million in a flash loan attack.