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Cream Finance Hacked; Loses $34 Million in Digital Assets

Summary:
It’s happened again, folks. Another crypto hack is in the books. This time, the victim is a platform known as Cream Finance, which at the time of writing, is reporting losses of approximately million. Cream Finance Loses a Lot of Dough The money was taken after a hacker exploited an opening in the firm’s system. Cream Finance is a decentralized organization that offers lending programs to crypto traders. Individuals can earn interest yields on many different cryptocurrencies including Ethereum, tether (USDT), COMP, and the company’s own cryptocurrency known as the Cream token. The attack occurred on the final day of August. As many as 462 million units of AMP – worth approximately .2 million at press time – practically disappeared overnight, with more than

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It’s happened again, folks. Another crypto hack is in the books. This time, the victim is a platform known as Cream Finance, which at the time of writing, is reporting losses of approximately $34 million.

Cream Finance Loses a Lot of Dough

The money was taken after a hacker exploited an opening in the firm’s system. Cream Finance is a decentralized organization that offers lending programs to crypto traders. Individuals can earn interest yields on many different cryptocurrencies including Ethereum, tether (USDT), COMP, and the company’s own cryptocurrency known as the Cream token.

The attack occurred on the final day of August. As many as 462 million units of AMP – worth approximately $24.2 million at press time – practically disappeared overnight, with more than 2,800 units of Ethereum – worth just under $10 million – vanishing the following day. Thus, the total amount of money taken is just over $34 million.

In a statement, Cream announced that the problem stems from a company oversight in which the methods utilized to integrate AMP were not entirely correct. This gave way to the opening that ultimately saw the hacker move in and engage in the theft. The company explained:

While unfortunate and disappointing, we take ownership of the error.

As it stands, all AMP trading and withdrawals have been suspended until the company can deploy a patch. Cream Finance is assuring all traders affected by the theft that the money will be instantly replaced, and that up to 20 percent of protocol fees will be utilized to ensure customers are paid back.

In addition, Cream says it is working with law enforcement to find the culprit, though they are also taking a page right out of the Poly Network playbook to peacefully work with the cyberthief. They have issued a statement to the thief saying that if he (or she) is willing to return the money soon, they can keep as much as ten percent of the stolen funds without consequence. They will end the investigation, and the person responsible for the attack will not face legal charges.

This is similar with the Poly Network in that after suffering a hack that caused it to lose more than $600 million in crypto funds, the company offered its hacker a job as chief security advisor and a $500,000 sign-on bonus if they were willing to return the funds.

We Will Forward All Your Info to Law Enforcement

Granted the person does not wish to comply, the investigation will continue, and Cream Finance will take any action necessary to obtain the funds. The company explained:

We will forward all relevant information to law enforcement authorities and prosecute to the fullest extent of the law.

Cream Finance suffered a previous financial setback last February when it lost more than $37 million in crypto funds following a flash loan exploit through its partner Iron Bank.

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