In yet another attack on Cream Finance, hackers managed to flee with $18 million worth of tokens. According to the analysis report prepared by PeckShield Inc., the hackers exploited the bug in the stablecoin contract AMP of the decentralized finance (DeFi) lending platform. In total, hackers got away with 418 million and 1308 tokens of AMP and Ethereum respectively. The cumulative value of these tokens amounts to be around $25 million. Once the news came into the public domain, the AMP prices registered a loss of 15%, thereby decreasing the net worth of the heist to $18.8 million. As per the latest reports, the AMP token was trading at a price of $0.05242.
The development is significant since this is not the first time that the DeFi platform has been compromised. Earlier this year, in the month of February, the platform suffered a flash loan attack which resulted in a total loss of $37.5 million. The website of the protocol also came under attack one month after this incident when hackers made an attempt to defraud the users with their dirty tricks. The impact of this development is apparent on the value of the CREAM token. It has fallen by around 8.53%, and at press time, the value of the token was hovering around $161 compared to its highest value on the day of $180.
The phenomenon of repeated attacks and its inability to protect itself against hackers doesn’t bode well for the future of Cream Finance. The platform has to seriously think about aspects of safety and security of invested amount and users. Without creating a holistic security infrastructure, it might not be possible for the platform to stay immune from such cyber-attacks in the future. Hence, the company must devise a strategy to enhance its security credentials to protect itself from such future hacking attempts and remain popular among target audiences.
