Sunday, December 5

DeFi protocol suffers hacker attack and loses R$720 million

The Cream Finance decentralized finance protocol suffered an attack that drained 720 million reais in tokens through an attack that used flash loan, quite common in these cases.

This was not the first attack suffered by Cream, although it was the biggest so far, surpassing the sum of the two previous ones. The team commented via Twitter that it is investigating the case.

The growing number of hacks on DeFi protocols is related to their gain in popularity and therefore the amount of money involved. Being attractive in the eyes of hackers.

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This is the third time that Cream Finance has suffered losses. In August of this year, around 100 million reais in tokens were stolen from the platform and previously, in February, another 200 million.

However this was the biggest of them, victim of an exploit using flash loan, a technique that allows the attacker to borrow money and return it right away, Cream Protocol lost 720 million reais in tokens.

Exploit transaction on Cream Finance. Source: EtherScan

In the transaction in question, the attacker also left a strange message for the developers of Cream and two other DeFi projects, Aave and Iron, the latter being abandoned due to an attack in March.

Message left by hacker. Source: EtherScan

In addition to being the biggest loss of the protocol, the amount of R$ 720 million also places this attack among the biggest in the sector. So far, this Cream Finance hack is second only to attacks suffered by Poly Network (1.5bn), PancakeBunny (1.1bn) and Paid Network (890m).

Through its official communication channels, the Cream Finance team announced that it was investigating the case and will share information shortly.

“We are investigating an exploit in CREAM v1 on Ethereum and will share updates as they become available.”

The target is money

In the last year, DeFi protocol thefts have seen a huge increase in both centralized exchange hacks and the amounts involved. The reason for this is that criminals always focus on where there is more money and with the popularization of these projects, it is not difficult to find such news.

In the past month alone, at least four DeFi platforms have been hacked. Despite this, the amount of exploit suffered by Cream is still greater than all of them added, which catches everyone’s attention.