Crypto From The DeFi Protocol Cream Finance Hack On Move
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When smart contracts have flaws, hackers, without any delay, can take advantage of profitable arbitrage opportunities by using flash loans to borrow large sums of money without security. It is a revolutionary idea because the full flash loan occurs in a single transaction. Due to their high sophistication level, these loans are a popular tactic among criminals.
Cream Finance Depletion
The attacker could borrow 500,000 ETH tokens successfully to deplete Cream Finance. A hacker who used the decentralized lending protocol to carry out a similar flash loan assault last February made $37.5 million. Since Cream Finance has previously been the victim of many hackers, new flash loan attacks now seem routine. Many users are now wondering why the protocol still has many users after numerous severe hacks.
Hacked For The Second Time
In August, Cream Finance experienced its second flash loan incident, during which more than $25 million vanished. According to Ethereum records, which the blockchain security company cited, at least $6 million got wiped out around 5:44 UTC.
AMP tokens worth 418,311,571 and 1,308.09 ether were also taken, increasing the total value of the theft to well over $25 million, according to the troubled DeFi protocol, which also confirmed the incident. According to an updated estimate by PeckShield, the hacker stole around $18.8 million. The loan of AMP tokens was the incident's primary cause.