Cream Finance Suffered Another Hack, Lost More Than $130 Million

Cream finance suffered another hack and lost more than $130 million which marked the third attack on the protocol so let’s read more about it in today’s crypto news.

Cream Finance suffered another hack attack which marked the third time the Defi protocol has been hacked. The DeFi platform is a lending and borrowing protocol that runs on the Ethereum network and the attack, a flash loan identified by PeckShield, resulted in the loss of cream tokens. This is, however, far from the first time that this platform suffered a major attack. Back in February the hackers made off with $37.5 million in a flash loan attack and tanked the price of CREAM by 30% in one hour.

CREAM was hacked all over again and the protocol got involved in a multi-million dollar exploit which resulted in an attacker making off with about 418 million in AMP which is the Flexa Network native token and 1300 ethereum. At press time, CREAM dropped 28% after the attack and now the token is set at $113 according to Coingecko. While Cream Finance is getting hit repeatedly, it is far from the only Defi platform to suffer these attacks. In August, the Poly Network interoperability protocol fell to an attack that saw the thief make off with $600 million in stolen funds marking the biggest hack in the Defi history.

These frequent attacks prompted onlookers to call for bigger consumer protection in the DeFi industry including the chair of the Securities and Exchange Commission Gary Gensler. He spoke at the Yahoo Finance All Markets Summit and said that the decentralized space will not end well unless more robust consumer protections are brought in.  He also described the term Defi as a misnomer and suggested that most tokens in the Defi space could be unregistered securities:

“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,” he said.

As previously reported, A month after getting exploited for the second time this year, Cream Finance reported recovering $16 million of the funds. The reports show that when the decentralized finance protocol suffered another breach of about $25 million in ETH and AMP was stolen and at the time, the team behind the project promised to investigate the manner and provide frequent updates.