Cream Finance, a crypto mortgage lending platform, reported that they were hacked and lost about $18 million worth of crypto.
Cream Finance writes:
“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.”
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
The attacker was able to take 418 million in the algorithmic stablecoin Ampleforth, AMP, and 1308 Ethereum.
According to CoinGecko, the AMP price has already dropped by more than 15%.
The attacker’s address indicates that they currently have $18.8million.
The Cream Finance team halted further losses by suspending supply and borrowing on AMP.
PeckShield, a crypto-security firm explain the hack:
“The hack is made possible due to a reentrancy bug introduced by $AMP, which is an ERC777-like token and exploited to re-borrow assets during its transfer before updating the first borrow.
Specifically, in the example tx, the hacker makes a flashloan of 500 ETH and deposit the funds as collateral. Then the hacker borrows 19M $AMP and makes use of the reentrancy bug to re-borrow 355 ETH inside $AMP token transfer(). Then the hacker self-liquidates the borrow.
The hacker repeats the above process in 17 different txs and gains in total 5.98K ETHs (with ~$18.8M). The funds are still parked in 0xCE1F….6EDE. We are actively monitoring this address for any movement.”
3/4 Specifically, in the example tx, the hacker makes a flashloan of 500 ETH and deposit the funds as collateral. Then the hacker borrows 19M $AMP and makes use of the reentrancy bug to re-borrow 355 ETH inside $AMP token transfer(). Then the hacker self-liquidates the borrow. pic.twitter.com/ryVX2RoxhJ
— PeckShield Inc. (@peckshield) August 30, 2021
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