The decentralised finance (DeFi) space has lost billions of dollars to hackers since the start of the year.
Ethereum-based decentralised finance (DeFi) protocol Cream Finance has confirmed that it has lost $130 million to hackers. This latest development came following an exploit of the protocol yesterday.
The team confirmed the attack in a tweet yesterday, stating that its Ethereum C.R.E.A.M. v1 lending markets were exploited, and liquidity was removed on October 27. The exploit led to the hackers carting away with $130 million worth of tokens.
The Cream Finance development team said they have been able to identify the vulnerabilities and patch them thanks to the help from @iearnfinance and others in the community. The team added that it had paused its v1 lending markets on Ethereum and is in the process of putting together a post-mortem review.
“We apologize to our users and community for this unfortunate incident and thank you for your support,” the developers added.
According to the report by PeckShield, the hack occurred via a flash loan attack. The blockchain records revealed that $92 million was stolen into one address and $23 million diverted into another. There were also other funds stolen from the protocol.
The funds are being moved around different wallets as the hacker tries to make it tough for the funds to be tracked. Most of the funds were stolen in Cream LP tokens and other ERC-20 tokens. The Cream LP token is the token you receive upon depositing funds into the Cream pool.
The price of cream (CREAM) has dipped by more than 25% since the team announced the exploit yesterday. The price dropped from $152 to currently trade around $113 per token, representing a 25% decline in value over the past 24 hours.
The DeFi space has experienced massive growth over the past few months. However, the security of DeFi protocols remains something to be worried about. Numerous DeFi protocols have lost millions of dollars to hackers since the start of the year, with the growing trend indicating a need to strengthen the security of the DeFi platforms.