Major Hack Attack Costs Cream Finance Over $130 Million in Cryptocurrencies

This is the third cyber-attack on Cream Finance this year alone.

By Radhika Parashar | Updated: 29 October 2021 11:38 IST

Major Hack Attack Costs Cream Finance Over $130 Million in Cryptocurrencies

Hackers have been targeting crypto-related platforms

Highlights

Decentralised lending protocol Cream Finance has been hacked
The company lost over $130 (Rs. 972 crore) worth of crypto assets
Most of these crypto coins were Cream LP tokens

A major hack attack has cost Ethereum-powered lending protocol called “Cream Finance” $130 million (roughly Rs. 972 crore). Around 68 crypto-assets that were stored with Cream Finance adding up to the lost amount have also been stolen in this attack. Majority of the crypto tokens lost were reportedly ERC-20 coins and the Cream Liquidity Protocol tokens. Following the attack that happened earlier this week, the value of the Cream LP tokens witnessed a substantial dip of 27 percent and is currently priced at around $111 (roughly Rs. 8,300), as per CoinGecko.

The company that has over 72,000 followers on Twitter acknowledged the incident and revealed that an investigation into the case is underway.

We are investigating an exploit on C.R.E.A.M. v1 on Ethereum and will share updates as soon as they are available.
— Cream Finance ???? (@CreamdotFinance) October 27, 2021

PeckShield, a blockchain security firm, was the first to identify the attack.

The unlawful transaction costed around 9 Ether as a “gas fee” – the charges levied for the facilitation of the transaction. Currently, the value of one token of Ether $4,618 (roughly Rs. 3.4 lakh).

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As per a report by CryptoPotato, the attacker now holds $92 million (roughly Rs. 688 crore) worth of crypto coins.

In this year alone, this is the third time that Cream Finance servers have been breached by cybercriminals.

Earlier in August, the protocol lost $25 million (roughly Rs. 186 crore) in a similar attack.

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This fresh attack, however, is the biggest that Cream Finance has had to witness so far.

With the global expansion of the crypto culture, news about hackers targeting crypto enthusiasts have been making the headlines in recent times.

For instance, data of over three million CoinMarketCap (CMC) users was leaked earlier in October, the crypto tracker confirmed.

As per a report by Business Insider, 32 incidents of hacks and fraud targeting the crypto space have been reported so far in 2021.

The total value of these attacks is nearly $3 billion (roughly Rs. 22,522 crore). The report has further claimed that the number of offenses are only growing by 41 percent every year.

Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

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Further reading: hack, cryptocurrency, ethereum, ERC-20

Radhika Parashar

Email Radhika

Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More