While DeFi has a lot of growth potential, security has always been a cause of concern. The news of hacks and potential scams is not uncommon in the cryptocurrency industry, with millions of dollars stolen from the decentralized finance sector.
Most recently, the news of Cream Finance and Alpha Finance being exploited with more than 13K Ethereum stolen stirred the crypto circles.
Alpha Finance and Cream Finance Reportedly Exploited.
Cream Finance tweeted earlier on February 12, 2021, that it is aware of the potential exploit and is currently investigating the matter. Reportedly the Cream Finance protocol has been exploited through which the hackers stole around 13K ETH approximately worth $37 million as per the current market price. As per the reports, the exploit happened due to some issue with the Iron bank contracts on the Cream Protocol. It is claimed that the Tornado cash was behind the attack as it funded the contract address which attacked the Cream Finance. As per the Onchain analytics, the suspected address involved in the exploit sent ETH tokens through Tornado cash service. 1000 ETH were sent to Cream Finance, 1000 Eth to Alpha Homora Deployer and around 100 EETH to Tornado grant.
The attack is considered one of the largest flash loans. Cream Finance later investigated the matter and revealed that the issue was not with the Cream Finance smart contracts but occurred due to a glitch in Alpha Finance. Alpha Finance said that it has addressed the issue and patched the loophole.
Alpha Finance noted that Alpha Homora V2 was the primary cause of the problem and it is working with Cream Finance and DeFi expert Andre Cronje to investigate the issue. The team also said that they have already prime suspect in mind. Recently, Yearn Finance was also exploited on its lending pools worth $11 million.
Later Cream Finance noted no problem from the Cream Finance end and the smart contracts were working as normal with markets reopened for v1 and V2. The services for bank lending. Cream Finance has said that it has suspended the asset borrowing service from the Iron Bank considering the incident.
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