The DeFi industry has come under attack again as the popular CREAM Finance was hacked. As a result, the price for the CREAM token dropped by around 40% in less than a few minutes.
February 13, 2021 | AtoZ Markets – The CREAM Finance team reported that the incident occurred on Saturday, February 13. It is known that the hacker took advantage of a vulnerability in the technology of instant or flash credits, but the details of the hack are being specified. The developers promised to share the details with all interested parties.
CREAM Finance suffers hack attack
According to preliminary data, the attacker consistently took out sUSD loans from IronBank through the Alpha Homora protocol, increasing the amount exponentially. Each subsequent loan was twice the previous one. In total, he managed to withdraw 13,200 WETH, 3.6 million USDC, 5.6 million USDT and 4.2 million DAI. This was pointed out by the analyst of The Block Igor Igamberdiev.
IronBank ($CREAM) was exploited on $37.5M, let’s take a quick look at what happened.👇— Igor Igamberdiev (@FrankResearcher) February 13, 2021
1/ Attacker used Alpha Homora for borrowing sUSD from IronBank.
Each time they borrow twice as much as in the previous one.
Alpha Lab’s team announces problem solved
Alpha Hamora’s developer, Alpha Labs, said it has fixed the vulnerability. The team is currently investigating the case with YFI founder André Cronier and CREAM Finance. According to them, they have already identified the main suspect.
Dear Alpha community, we've been notified of an exploit on Alpha Homora V2. We're now working with @AndreCronjeTech and @CreamdotFinance together on this.— Alpha Finance Lab (@AlphaFinanceLab) February 13, 2021
The loophole has been patched.
We're in the process of investigating the stolen fund, and have a prime suspect already.
Alpha Hamora is an ETH-based protocol that builds leverage on positions in profitable farming pools.
CREAM token went into a tailspin
After the news of the Alpha Hamora hack, CREAM tokens dropped in price by 40%, from $285 to $73. At the time of writing, the coin is trading at $222.
The CREAM team has restarted the markets and announced that everything is working as usual. A statement of the incident will be released shortly.
C.R.E.A.M. contracts and markets were investigated and found to be functioning as normal. Markets have been re-enabled across both V1 and V2.— Cream Finance 🍦 (@CreamdotFinance) February 13, 2021
Post mortem to follow.
Wint of time
Cryptocurrencies have entered a bullish cycle. Along with the rise in prices, the number of hacker attacks also increased. For example, on January 26, an attacker exploited the SushiSwap system vulnerability and stole 81 ETH, which the exchange rate at the time of the hack was $103,842.
Read also: Hackers Steal 1.5 Million Ethereum Classic
Last December, the Livecoin cryptocurrency exchange fell victim to a hacker attack. Unable to recover from the incident, the team announced the closure of the business. Some community members suspect its organizers of a banal exit scam. It is interesting that at the moment the bitcoin rate on the exchange reached $222,000, and the ether rate reached $ 6,500.
In addition, on December 28, a white hacker stole $3 million from the Cover protocol. A few hours later, he returned the stolen goods.
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