Ethereum DeFi Cream Finance protocol hacked for more than $ 130 million

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UPDATE (4:25 p.m. ET): The Cream Finance team confirmed the theft of $ 130 million in tokens in a new tweet, claiming that “our Ethereum CREAM v1 loan markets have been tapped and liquidity has been deleted October 27, 1354 UTC.

“With the help of friends at @iearnfinance and other members of the community, we were able to identify the vulnerabilities and fix them. In the meantime, we have suspended our v1 lending markets on Ethereum and are in the process of releasing in place a post-mortem examination, “the team said.” We apologize to our users and our community for this unfortunate incident and thank you for your support. “

The DeFi Cream Finance protocol has been hacked for more than $ 130 million. The exploit was brought to light by PeckShield, who identified a large flash loan transaction that was used to complete it.

According to blockchain records, $ 92 million was stolen from one address and $ 23 million from another, along with other funds taken. The funds are now moved to different wallets.

The stolen funds were primarily Cream LP tokens and other ERC-20 tokens. Cream LP tokens are tokens that you receive when you deposit funds into Cream pools.

The price of cream (CREAM) fell in the wake of the news, from $ 152 to $ 111 within minutes – a drop of 27% – according to CoinGecko.

The price of the cream has dropped to $ 111. Source: CoinGecko.

Depending on the exploit transaction, the hacker left a somewhat unusual message. They wrote, “gÃTµ Baave lucky, iron bank lucky, cream not. Ydev: bad incest, don’t do it.” This seems to refer to DeFi Aave and Iron Bank lending platforms, as well as Cream Finance.

Cream Finance is a decentralized lending protocol built on the Ethereum blockchain. The protocol has notably suffered several flash loan attacks in its history, losing $ 37.5 million in February and then an additional $ 18.8 million in August.

Today’s hack is the third largest DeFi hack in history, according to Rekt’s ranking (although the two biggest hacks had funds returned).

This will bring the total amount of funds stolen in DeFi attacks to over $ 500 million (graph not yet updated).

This story has been updated to show that the amount of funds stolen was higher than initial estimates.

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© 2021 The Block Crypto, Inc. All rights reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial or other advice.

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