Cream Finance Hack Puts Cryptosphere On Edge – Coin Drops 30%
Last Updated on 13 February 2021 by CryptoTips.eu
Cream Finance, the DeFi protocol backed by developer Andre Cronje’s team, has been exploited together with the Alpha Finance protocol. Both were robbed of (allegedly) some 37 million dollars. The fact that the cryptosphere market is currently getting near to overheating was obvious when the Cream Finance coin immediately dropped 30% as the news become known. It has since recuperated and is currently trading at 16% lower.
A user commented at the time of the Cream Finance hack:
Looks like a hack. Looks like they have made off with 13K ETH and they have started sending several ETH through Tornado Cash in addition to 1,000 ETH to Alpha Homora Deployer, 1,000 ETH to Cream Finance, and 100 ETH to Tornado’s grant.
Who do you think will be on the hook for the Cream hack:
— Hasu (@hasufl) February 13, 2021
1) Cream lenders
2) Alpha borrowers
3) Cream token holders
4) Alpha token holders?
There's def an interpretation possible where Alpha still owes the money to Cream https://t.co/4ogxUmdWv0
Alpha Finance posted in response:
Dear Alpha community, we’ve been notified of an exploit on Alpha Homora V2. We’re now working with
AndreCronjeTech and CreamdotFinance together on this. The loophole has been patched. We’re in the process of investigating the stolen fund, and have a prime suspect already.
At the time of the hack, Cream Finance was trading near $285 and immediately dropped down to $199. As the situation unfolded and everybody panic sold, it took a bit for the coin to recover.
C.R.E.A.M. contracts and markets were investigated and found to be functioning as normal. Markets have been re-enabled across both V1 and V2.
— Cream Finance 🍦 (@CreamdotFinance) February 13, 2021
Post mortem to follow.
Alpha Finance Lab was trading near $2,30 and dropped 25% to around $1,82.
Flash loan
As usual, the exploit was done via a flash loan, a bug that has repeatedly enabled hackers of draining DeFi protocols of value.
Andre’s team was quickly on the case and fixed the bug, but still it showed how much on edge the cryptosphere is for the moment as the simple news of the hack immediately spread like wildfire on social media and brought down several other coins in it’s wake.
