Cream Finance Attackers Exchange 1 Million DAIs for 529 Ethereum: A Deep Dive

04/12/2023 15:45 • Tech Ticker • 130 views

According to reports, according to PeckShield monitoring, Cream Finance attackers exchanged 1 million DAIs for approximately 529 Ethereum and transferred them to addresses starting with 0xdeCE.

Cream Finance attacker exchanged 1 million DAIs for approximately 529 Ethereum

The rise of cryptocurrencies has led to an increase in online financial frauds and cyber-attacks. One of the latest cyber-attacks to hit headlines is the Cream Finance attack, where attackers exchanged 1 million DAIs for approximately 529 Ethereum and transferred them to addresses starting with 0xdeCE. In this article, we will explore the details of the attack and the aftermath.

Introduction

Cream Finance, a decentralized finance protocol built on the Ethereum blockchain, became the target of a cyberattack on February 13, 2021. The hackers were able to cause a loss of funds worth $37.5 million by exploiting a vulnerability in the protocol’s AMP token. Reports from PeckShield confirm the attackers were able to exchange 1 million DAIs for approximately 529 Ethereum and transferred them to the 0xdeCE addresses, coincidentally the same address that received funds from the separate Pickle Finance exploit in November 2020.

Details of the Attack

The attack was executed through a reentrancy bug, which allowed the attackers to infinitely borrow funds without paying them back. The attackers then manipulated the price of AMP tokens to increase the amount they could borrow. After executing the attack, the attackers moved the stolen funds to the Ethereum addresses beginning with 0xdeCE.

Consequences of the Attack

The hack was initially reported by blockchain security firm PeckShield. Cream Finance posted a medium blog post stating, “approximately $34,000,000 was lost by AMP and CREAM supporters, which has made this the second-largest exploit in DeFi history.” The protocol stated that they had paused the supply and borrow of AMP on their platform while they investigated the matter.

Future Implications

The rise in cyber-attacks targeting DeFi platforms is a cause for concern as they expose the vulnerability of these protocols. Crypto enthusiasts and industry experts believe that DeFi protocols need to prioritize security features to mitigate the risk of cyber-attacks.
In conclusion, the Cream Finance attack highlights the importance of security in DeFi protocols. The DeFi ecosystem is growing at a rapid pace, and it is vital to have robust security protocols in place to ensure the safety of user funds. Therefore, it is necessary to understand that every DeFi platform is vulnerable unless they take strong necessary precautions against the temptations of large profits and establish a strong security system.

FAQs

1. Q: How did the attackers execute the attack?
A: The attackers exploited a reentrancy bug, which allowed them to borrow infinite funds without paying them back.
2. Q: How much was lost in the Cream Finance Attack?
A: Approximately $34,000,000 was lost in the Cream Finance attack.
3. Q: What can be done to prevent such attacks on DeFi protocols?
A: DeFi protocols need to prioritize security features to mitigate the risk of cyber-attacks. Additionally, constant monitoring and updating of the security system is essential.

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