Cream Finance will pay back its users following an $18.8 million flash loan hack

As AZCoin News reported, the prominent lending protocol in the DeFi Cream Finance (CREAM) market has suffered a flash loan attack, resulting in a loss of more than $18 million. After investigating and fixing the bug, the project claims to return the money to the users.

Cream Finance to repay stolen Ether and Amp via protocol fees

Cream announced the aftermath of the AMP flash loan exploit, promising to replace the stolen ETH and AMP tokens by allocating 20% ​​of the protocol fees until the debt is fully paid. In addition, the project will also post collateral with relevant parties at AMP and its creators, Flexa digital payments network, to secure the debt.

According to the post-mortem report, this flash loan exploit is the first time Cream Finance has experienced losing 462 million AMP tokens and 2,800 ETH. With support from blockchain security firm PeckShield, Cream found that an error caused the exploit in how the protocol integrated AMP.

“While unfortunate and disappointing, we take ownership of the error,” Cream noted.

Cream also discovered a smaller copy-cat attack from an address with a trading history on the Binance exchange in parallel with this event. CZ’s cryptocurrency trading platform is currently working with Cream to identify the perpetrators of this attack.

According to Cream, they are currently working with the authorities to track down the attacker. Also, work with law enforcement agencies to prosecute criminals at the highest level of the law. The project claims to give them a 10% bounty if they decide to send the stolen money back.

“If anyone is able to identify and provide information leading to the arrest and prosecution of the exploiter, we will share 50% of all funds returned”, Cream said.

After being hacked, Cream halted supply and loan contracts on AMP on August 30. After this news spread, the CREAM price started to dump sharply, the price of AMP plummeted near 13%. At the moment, although CREAM has not dropped to the floor, it has not yet recovered to the original high at $180. CREAM is trading at $161 now.

cream-finance-will-pay-back-its-users-following-an-18-8-million-flash-loan-hack

CREAM/USD 4-hour chart | Source: TradingView

Notably, this is not the first time this platform has been “visited” by hackers. In February of this year, Cream Finance was hacked, losing 13,000 ETH. Then in March 2021, Cream Finance and PancakeSwap suffered DNS attacks. Therefore, it seems that Cream Finance is the favorite target of hackers.

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