The attack significantly compromised funds in the Cream Liquidity Provider Token and other Ethereum-based tokens.
In what has been called the biggest theft in the decentralized finance sector, Cream Finance Verified Hackers have fallen victim to a massive flash loan exploit that stole over $130 million.
The incident marks at least the third major attack on a DeFi lending protocol since early 2021.
The flash loan attack was the first Identified By blockchain data analytics company PeckSheild. Cream Finance later tweeted Notice CREAM v1 exploits on Ethereum are being investigated.
Negative feedback from the crypto community that the Taipei-based decentralized company fails to protect the interests of its users has forced Cream Finance to close the forum.
The compromised funds are believed to be Cream Liquidity Provider Tokens and other Ethereum-based tokens. Cream Finance has said it has suspended its v1 lending market and is conducting a post-mortem investigation.
The attack further reduced investor confidence in Cream Finance with its native token, CREAM. fall It has increased by over 23% in the last 24 hours.
Cream Finance has fallen victim to such attacks on a daily basis.In August the company witnessed $19M worth of exploits caused by Reentrancy Bug Introduced by Amp CryptocurrencyHowever, the hackers were confident they would return most of the stolen funds
When asked how likely it is that the stolen $130 million in funds will now be returned by hackers, Sun Huang, general manager and vice president of SecDevOps at XREX Inc, said: said to Forkast. News That the attackers are likely to negotiate with Cream Finance and return the funds.
“…especially when blockchain tracking technology becomes more mature and more people are able to find clues and track down attackers.” Huang said.
A flash loan is a form of unsecured lending valid within one atomic blockchain transaction. In a flash loan attack, hackers find ways to manipulate the market and execute transactions even if the amount borrowed cannot meet the protocol.
