{"id":39990,"date":"2021-08-31T10:15:00","date_gmt":"2021-08-31T08:15:00","guid":{"rendered":"https:\/\/crypto-economy.com\/?p=39990"},"modified":"2021-08-31T10:15:00","modified_gmt":"2021-08-31T08:15:00","slug":"defi-lender-cream-finance-suffers-a-25m-flash-loan-exploit","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/defi-lender-cream-finance-suffers-a-25m-flash-loan-exploit\/","title":{"rendered":"DeFi Lender Cream Finance Suffers a $25M Flash Loan Exploit"},"content":{"rendered":"<p style=\"text-align: justify\">DeFi lender <a href=\"https:\/\/app.cream.finance\/\" target=\"_blank\" rel=\"noopener\">Cream Finance<\/a> is the latest victim of DeFi criminals as the protocol has suffered a $25 million flash loan attack involving Ethereum (ETH) and Flexa Network&#8217;s native token, AMP.<\/p>\n<p style=\"text-align: justify\"><!--more--><\/p>\n<p style=\"text-align: justify\">On Monday, August 30, Cream announced that its Ethereum V1 market had suffered a hack resulting massive losses in ETH and AMP tokens. The attacker has made off with more than 418,311,571 in Flexa Network&#8217;s native token, AMP, and 1,308 Ethereum. The announcement reads:<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">C.R.E.A.M. v1 market on Ethereum has suffered an exploit, resulting in a loss of 418,311,571 in AMP and 1,308.09 in ETH, by way of reentrancy on the AMP token contract.<\/p>\n<p>We have stopped the exploit by pausing supply and borrow on AMP. No other markets were affected.<\/p>\n<p>&mdash; Cream Finance \ud83c\udf66 (@CreamdotFinance) <a href=\"https:\/\/twitter.com\/CreamdotFinance\/status\/1432249771750686721?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">August 30, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p style=\"text-align: center\"><em>\u201cC.R.E.A.M. v1 market on Ethereum has suffered an exploit, resulting in a loss of 418,311,571 in AMP and 1,308.09 in ETH, by way of reentrancy on the AMP token contract.<\/em><\/p>\n<p style=\"text-align: center\"><em>We have stopped the exploit by pausing supply and borrow on AMP. No other markets were affected.\u201d<\/em><\/p>\n<p style=\"text-align: justify\">The total stolen amount summed to around $25 at the time of hack. AMP price sharply after the attack, bringing the stolen amount down to around $19 million. The hacker\u2019s address indicate that he currently has $18.727 million on his address.<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">3\/4 Specifically, in the example tx, the hacker makes a flashloan of 500 ETH and deposit the funds as collateral. Then the hacker borrows 19M <a href=\"https:\/\/twitter.com\/search?q=%24AMP&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">$AMP<\/a> and makes use of the reentrancy bug to re-borrow 355 ETH inside <a href=\"https:\/\/twitter.com\/search?q=%24AMP&amp;src=ctag&amp;ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">$AMP<\/a> token transfer(). Then the hacker self-liquidates the borrow. <a href=\"https:\/\/t.co\/ryVX2RoxhJ\" target=\"_blank\">pic.twitter.com\/ryVX2RoxhJ<\/a><\/p>\n<p>&mdash; PeckShield Inc. (@peckshield) <a href=\"https:\/\/twitter.com\/peckshield\/status\/1432250680799027204?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">August 30, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p style=\"text-align: justify\">According to Cream Finance, the hacker exploited a reentrancy bug in the AMP token contract in a set of 17 transactions. The AMP token contract implements ERC77-based ERC1820, which has the _callPreTransferHooks for reentrancy. Blockchain security firm PeckShield confirmed that the hack was due to a \u201creentrancy bug introduced by $AMP\u201d. PeckShield explained:<\/p>\n<p style=\"text-align: center\"><em>\u201cThe hack is made possible due to a reentrancy bug introduced by $AMP, which is an ERC777-like token and exploited to re-borrow assets during its transfer before updating the first borrow.\u201d<\/em><\/p>\n<p style=\"text-align: justify\">This was flashloan exploit where hacker took a flashloan in ETH and used that loan to borrow AMP tokens. PeckShield explained the attack as:<\/p>\n<p style=\"text-align: center\">\u201cSpecifically, in the example tx, the hacker makes a flashloan of 500 ETH and deposit the funds as collateral. Then the hacker borrows 19M $AMP and makes use of the reentrancy bug to re-borrow 355 ETHs inside $AMP token transfer (). Then the hacker self-liquidates the borrow.\u201d<\/p>\n<p style=\"text-align: justify\">The attacker repeated the above process in 17 different transactions and was able to get 5.98K ETHs, worth around $19 million. The funds are now in &nbsp;<a href=\"https:\/\/etherscan.io\/address\/0xce1f4b4f17224ec6df16eeb1e3e5321c54ff6ede\" target=\"_blank\" rel=\"noopener\">0xcE1F4B4F17224ec6df16Eeb1e3e5321c54Ff6Ede<\/a> address.<\/p>\n<p style=\"text-align: justify\">Following the attack, both the Amp token and Cream Finance\u2019s native token, CREAM, saw a notable price drop. <a href=\"https:\/\/coinmarketcap.com\/currencies\/amp\/\" target=\"_blank\" rel=\"noopener\">AMP<\/a> plummeted 13% and <a href=\"https:\/\/coinmarketcap.com\/currencies\/cream-finance\/\" target=\"_blank\" rel=\"noopener\">CREAM<\/a> is changing hands at $165 with 8% drop in the last 24-hours.<\/p>\n<p style=\"text-align: justify\">As <a href=\"https:\/\/crypto-economy.com\/defi-exploits-in-2021-a-compilation-of-defi-crimes\/\" target=\"_blank\" rel=\"noopener\">discussed<\/a> earlier, Cream Finance\u2019s V2 Iron Bank was involved in a massive $37 million Alpha Homora Flash Loan Attack. In February 2021, Alpha Homora suffered a $37-million hack, which exploited Cream\u2019s Iron Bank protocol-to-protocol lending platform.<\/p>\n<hr>\n<div class=\"td_block_wrap tdb_single_content td_uid_54_612de0ad73f51_rand td-pb-border-top td_block_template_1 td-post-content tagdiv-type\" data-td-block-uid=\"td_uid_54_612de0ad73f51\">\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"td_block_wrap tdb_single_content td_uid_54_611f6abc5476b_rand td-pb-border-top td_block_template_1 td-post-content tagdiv-type\" data-td-block-uid=\"td_uid_54_611f6abc5476b\">\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"td_block_wrap tdb_single_content td_uid_54_611f65fb0a766_rand td-pb-border-top td_block_template_1 td-post-content tagdiv-type\" data-td-block-uid=\"td_uid_54_611f65fb0a766\">\n<div class=\"tdb-block-inner td-fix-index\">\n<p style=\"text-align: center\"><strong><em>If you found this article interesting, here you can find more<\/em><\/strong>&nbsp;<a href=\"https:\/\/crypto-economy.com\/news\/defi\/\" target=\"_blank\" rel=\"noopener noreferrer\"><em><strong>DeFi News<\/strong><\/em><\/a><\/p>\n<\/div>\n<\/div>\n<div class=\"td_block_wrap tdb_single_tags td_uid_57_611f65fb0d0e6_rand td-pb-border-top td_block_template_1\" data-td-block-uid=\"td_uid_57_611f65fb0d0e6\"><\/div>\n<\/div>\n<\/div>\n<div class=\"td_block_wrap tdb_single_tags td_uid_57_611f6abc5b655_rand td-pb-border-top td_block_template_1\" data-td-block-uid=\"td_uid_57_611f6abc5b655\"><\/div>\n<\/div>\n<\/div>\n<div class=\"td_block_wrap tdb_single_tags td_uid_57_612de0ad8068a_rand td-pb-border-top td_block_template_1\" data-td-block-uid=\"td_uid_57_612de0ad8068a\"><\/div>\n","protected":false},"excerpt":{"rendered":"<p>DeFi lender Cream Finance is the latest victim of DeFi criminals as the protocol has suffered a $25 million flash loan attack involving Ethereum (ETH) and Flexa Network&#8217;s native token, AMP.<\/p>\n","protected":false},"author":14,"featured_media":22979,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[84,111,74],"tags":[5426,5287],"_links":{"self":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/39990"}],"collection":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/users\/14"}],"replies":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/comments?post=39990"}],"version-history":[{"count":0,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/39990\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media\/22979"}],"wp:attachment":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media?parent=39990"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/categories?post=39990"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/tags?post=39990"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}