DeFi protocol CREAM Finance reports $130M hack
DeFi lending protocol CREAM Finance has reported the third-largest DeFi attack in history after hackers stole over $130 million from the network.
CREAM Finance revealed the news on Twitter that its Ethereum CREAM v1 lending markets reported an exploit of $130 million worth of cryptocurrencies. The cause has been identified, and the team has been working on it.
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
CREAM Finance provides loan services to individuals and businesses and offers its services on Ethereum (ETH), Binance Smart Chain (BSC), Polygon, and Fantom networks.
Reports suggested that hackers used flash loans to drain the funds from the network. Flash loans are loans that allow users to borrow funds without the need for collateral so long the money is returned within one transaction block immediately.
However, hackers over time have found loopholes in the system and exploited it to steal millions of dollars from DeFi networks.
As per blockchain reports, hackers transferred $92 million into one address and $23 million into another. The remaining funds were transferred to other addresses. In addition, Cream liquidity provider tokens and Ethereum-based tokens (ERC-20 tokens) were the most affected funds from the attack.
Cream token $CREAM plummeted within minutes of the incident, reporting a plunge from $152 to $111. At the time of writing, $CREAM was trading at $99, down by 36% in 24 hours, according to CoinGecko.
Previously, Cream Finance was hit by a $ 37.5 million flash loan attack in February of this year and a subsequent $18.8 million flash loan attack in August.
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OhNoCryptocurrency via https://www.ohnocrypto.com/ @Gauri Bhatia, @Khareem Sudlow