Lending Platform Cream Finance Suffered The Loss In Flash Loan Attack

By Author: indrani bose
Total Articles: 20
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On Wednesday Decentralized finance (DeFi) money market and lending platform Cream Finance which works on the Ethereum network has been hacked losing over $130 million worth of funds.

This is the third-time DeFi protocol that has been hacked. The attacker drained this amount through a large flash loan in a complex transaction that includes 68 different assets and cost more than 9 ETH in gas. This flash loan was first identified by Blockchain data analytics company PeckShield Inc. on Wednesday. The Compromised funds were mainly Cream liquidity provider tokens, along with Ethereum-based platform tokens. Cream Finance would be one of the largest latest exploits.

This attack leads to CREAM fluctuating by 28%. The chair of the Securities and Exchange Commission, Gary Gensler, is supporting greater consumer protection in the DeFi industry. He said, “There’s a lot of lending going on. There’s a lot of trading going on. And without protection, I fear that it’s going to end poorly,”. Now the hacker is mainly using Ren’s Bitcoin bridge to work on ‘wash’ the funds.

I am an external analyst and working as a content writer