After being the subject of an attack on Cream Finance, a decentralized finance (DeFi) lending, and borrowing platform, cybercriminals managed to steal more than 418 million AMP. The native token of Flexa Network, along with an additional 1,308 Ethereum through a recently discovered exploit.
At the time of the attack, the total value of the digital tokens targeted by the attackers stood at around $25 million. However, AMP prices quickly dropped by 15 percent. It brought the dollar worth of the exploit to $18.8 million as of press time, which is still a significant loss.
Cream Finance announced in an official declaration today that the hacker took advantage of the AMP token in the protocol. Cream Finance placed re-borrowing requests before updating the first borrowing order in a total of 17 different transactions.
Because Platform suspended the production of AMP tokens and taken out loans against them, the exploit ended. Afterward, the corporation stated that none of the other markets got damages as a result of the occurrence as well.
Popular DeFi Platform
Cream Finance is one of the top 20 DeFi protocols in the world. It has more than $658 million in assets under management. The protocol was a fork of the Compound protocol and has gained popularity because it allows access to a large number of additional cryptocurrency markets.
CREAM, the platform’s native token, suffered a price reduction as a result of the attack. Which has continued to fall ever since the news broke.
Flash loans, which allow customers to borrow money and return it entirely in the same transaction, are becoming increasingly popular. Furthermore, they have become a fairly prevalent means of interfering with the security of DeFi systems, as previously stated.
According to PeckShield, a crypto-security company, hackers used a 500 Ethereum flash loan to take advantage of a reentrancy weakness on the Flex Network. Cream Finance suffered a loss of $37.5 million in cryptocurrency earlier this year. This is a result of the misuse of the Alpha Finance platform.
While the DeFi ecosystem regards widely as a genuine threat to the existing centralized banking industry, the young platforms experience technical difficulties.
CipherTrace conducted an investigation that was just published. The overall amount of unaccounted-for DeFi funds was $474 million, according to the findings. Which occurred as a result of a cyberattack on Poly Network that cost the company $600 million and resulted in the withdrawal of the cash.
Despite the fact that some money was taken, the majority of the cash was recovered. It was later on returned to their original owners by the hackers of the Poly Network network.
“The views and opinions on this Crypto News Website are solely those of the authors and contributors. These views and opinions do not necessarily represent those of iBaseTrading or its partners.”