Cream Finance hacked
Modern hackers are so advanced in breaking various digital defenses that even large projects are attacked. Needless to say about start-up companies that cannot afford to install expensive protections. As a result, there is an obvious vulnerability to interference in one’s own work. A similar situation happened with the young and ambitious Cream Finance project. The platform has been hacked. The damage was $ 37.5 million. Below we will tell you everything that is known about this event and its significance for the krypton industry. So let’s get started.
Information about the project
First of all, according to the old tradition, let us first tell you the details about Cream Finance. This is a fairly well-known company, despite the relative novelty. The platform successfully operates in the field of issuing loans in cryptocurrency. This is a distributed platform, which is used by novice traders and miners who do not have a lot of capital at the start of work. The project issues a certain amount at a comfortable percentage, earning on the difference in amounts. The scheme is as old as the world, and therefore it is successfully practiced and brings a stable income.
So it’s not surprising that the young decentralized project managed to steal almost $ 40 million. Today is clearly the hardest day in the history of Cream Finance, with a lone hacker or a group of crackers practically paralyzing the system. According to the information received, digital criminals took advantage of a vulnerability in the project’s device. A security flaw was found in its own storage for project tokens and investors. Their own wallet is called Iron Bank, so the hack is ironic and literally catastrophic.
How the hack took place. Details of the incident
In fact, the hacker simply cheated the project’s lending system. The burglar borrowed money, constantly doubling the amount. Roughly speaking: first a dollar, then two, and then four. This is approximately how the amount reached $ 1.8 million. The attacker fraudulently placed the funds stolen from the project into his account. The system saw a solvent user in the hacker, and therefore continued to issue loans. First, 10 million. Then the rest of the colossal sum of 37 million. The attacker has already successfully distributed funds to multiple accounts, making it difficult to quickly identify the hacker. Note that a small part of the stolen funds was sent as a donation to a service that obfuscates the traces of digital transfers.
Industry-wide role of Cream Finance
They say that you need to learn from the mistakes of others. That is why we advise all novice developers to take inspiration from what happened with Cream Finance and start fine-tuning the security of their own projects. Trust me, hackers work tirelessly to come up with ways to bypass even the most advanced defenses. Of course, coming up with an ideal system that cannot be hacked is impossible. But your challenge is always to stay one step ahead of digital criminals. Only this approach will make it possible to confidently delight investors and receive money from doing what they love.
In the case of Cream Finance, the market reacted immediately to the leak. The company’s internal asset value dropped from $ 270 to $ 220. Obviously, users are less interested in a project with a tainted reputation. Nevertheless, the developers said that they are studying the details of what happened and will eliminate the functionality vulnerability in the near future. To stay up to date with all the latest developments in the crypto industry, read about the news of the blockchain world on our website. We publish only high-quality, interesting material. Thanks for attention. Good luck!