DeFi Platform Cream Finance Loses $26,000,000 in Hack

DeFi Platform Cream Finance Loses $26,000,000 in Hack

The decentralized finance (DeFi) lending protocol Cream Finance (CREAM) suffered a hack that led to the lack of about $26 million in Ethereum (ETH) and AMP tokens.

Cream Finance says the platform misplaced 418,311,571 AMP, presently valued at $22.1 million, and 1,308 ETH, presently valued at $4.42 million, on Tuesday “by the use of reentrancy on the AMP token contract.” On the time of the hack, the crypto was price about $18 million.

The platform paused provide and borrow on AMP to cease the exploit. AMP is a crypto asset used as collateral for stablecoin funds.

The blockchain safety agency PeckShield first noticed and analyzed the hack.

“The hack is made doable because of a reentrancy bug launched by AMP, which is an ERC777-like token and exploited to re-borrow property throughout its switch earlier than updating the primary borrow.

Particularly, within the instance [transaction], the hacker makes a flash mortgage of 500 ETH and deposit the funds as collateral. Then, the hacker borrows 19 million AMP and makes use of the reentrancy bug to re-borrow 355 ETH inside AMP token switch(). Then the hacker self-liquidates the borrow. The hacker repeats the above course of in 17 completely different transactions and positive aspects in whole 5.98K ETHs (with ~$18.8 million).

The protocol’s native token, CREAM, is down greater than 10% on the day and is buying and selling at $161.70 at time of writing, based on CoinGecko.

This week’s hack shouldn’t be the primary assault on Cream Finance this yr. In March, the lending platform revealed that their web site had suffered a website identify system (DNS) spoofing assault which tried to trick their customers into typing their non-public seed phrase right into a faux MetaMask pockets enter field.

Assaults on DeFi protocols have been within the information up to now few weeks after Poly Community suffered an enormous $643 million hack earlier this month. Poly Community, nevertheless, labored with the pseudonymous attacker, referred to as Mr. White Hat, and has retrieved the entire stolen funds.

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