Cream Finance DeFi Lending Platform Exploited on a $19million Flash Loan Hack
Cream Finance, a major decentralized finance (DeFi) lending protocol, has suffered a major exploit, with a hacker draining nearly $19 million from its platform. An anonymous cyber thief was able to drain $18.8 million in the reported flash loan hack of the Cream Finance protocol, via a reentrancy bug introduced by the AMP token, as stated by Peckshield, a blockchain security, and data analytics company.
The protocol tweeted this morning that 418,311,571 in AMP and 1,308.09 ETH were lost in this hack. They have stopped the exploit by freezing supply and borrow on AMP and confirmed that no other markets were affected by this attack.
Peckshield stated that the attack came from a 500 ETH flash loan from the hacker. He then used this to utilize a reentrancy bug in the smart contract network of the Flex Network. Flash loans, that are usually undercollateralized, can still be borrowed and repaid within a single transaction. It may have involved two hackers who made a total of 17 transactions. Peckshield has already identified the address where the hackers parked their loot, and it is currency monitored.
At the time of writing, the value of the CREAM token was down by 8.53%. Since the exploit was announced, CREAM has dropped to a low of $160 from $180.
Remarkably, the DeFi platform is one of the most flourishing networks when it comes to crypto evolution. Still, issues like this should not be overlooked. In fact, they should be focused on, in order to maintain significant growth in the digital asset world.
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