DeFi Protocol Cream Finance Exploited For $18M, AMP Token Falls 15%

What Happened: DeFi lending platform Cream Finance (CRYPTO: CREAM) has fallen victim to yet another exploit which saw hackers make off with over $18 million.

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.

We have stopped the exploit by pausing supply and borrow on AMP. No other markets were affected.

— Cream Finance 🍦 (@CreamdotFinance) August 30, 2021

According to an analysis by blockchain security analytics firm PeckShield Inc, the hacker exploited a reentrancy bug on Ampleforth’s (CRYPTO: AMPL) algorithmic stablecoin contract AMP (CRYPTO: AMP).

In total, the hacker amassed 418 million AMP tokens and 1308 Ethereum (CRYPTO: ETH) which amounted to $25 million at the time.

However, the value of AMP dropped sharply following news of the exploit, bringing the hacker’s total gain down to $18.8 million.

At the time of writing, AMP had lost 15% of its value and was trading at a price of $0.05242.

Why It Matters: This isn’t the first time Cream Finance has fallen victim to a DeFi exploit. In February this year, Cream saw yet another flash loan exploit led to the loss of funds totaling $37.5 million.

Only a month later, attackers targeted the protocol’s website and proceeded to request users seed phrases and empty the accounts of those who fell trap.

at this point, exploits are a feature not a bug on $CREAM lmao https://t.co/FO26VtD9ln

— Levi Alterman (@levi_alterman) August 30, 2021

Price Action: The value of the CREAM token has also fallen by 8.53% since news of the exploit broke. At press time, CREAM was trading at $161, down from its intraday high of $180.

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