DeFi lending platform Cream loses $19 million after flash hack

DeFi lending platform Cream loses $19 million after flash hack

The service becomes the latest to suffer at the hands of cryptocurrency hackers

Major lending-focused decentralized finance (DeFi) protocol Cream Finance was reported as another victim in the crypto space after being attacked by a hacker who managed to steal nearly $19 million from its platform. The serious vulnerability suffered by this company puts it on a list of others where something similar has happened.

It appears that a hacker, whose identity remains unknown, was able to make $18.8 million in the latest Cream Finance protocol flash loan exploit. According to research from blockchain security firm PeckShield, the hacker took advantage of a re-entry error introduced by the Amp token. As indicated by PeckShield in its investigation, the hacker borrowed assets during its transfer before the update was made from the first to borrow in 17 separate transactions. This caused the hacker to be able to exploit the Amp token and get his hands on the large sum of money. “The hacker makes a flashloan of 500 ETH and deposits the funds as collateral. Then the hacker erases 19M $AMP and makes use of the reentrancy bug to re-borrow 355 ETH inside $AMP token transfer. Then the hacker self-liquidates the borrow,” the security firm stated, referencing an example transaction.

The news was announced yesterday and, since then, Cream Finance said the protocol has stopped the exploit by pausing all supply and lending contracts related to the Amp token. “No other markets were affected,” the company said.

PeckShield says its researchers are still working hard to monitor the address where the funds are still parked in order to detect any future movements. This theft caused the Amp to drop nearly 13% in the last 24 hours. In the last few weeks, a large wave of hacks and exploits have been reported among centralized and decentralized cryptocurrency platforms.

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