Threat actors stole $29 million worth of crypto assets from Cream Finance

Crooks have stolen more than $29 million in cryptocurrency assets from Cream Finance, a decentralized finance (DeFi) platform.

Threat actors have stolen more than $29 million in cryptocurrency assets from Cream Finance, a decentralized finance (DeFi) platform.

C.R.E.A.M. Finance is a decentralized lending protocol for individuals, institutions and protocols to access financial services. It promises earnings to users who are passively holding ETH or wBTC.

The security breach was confirmed by the company with a message via Twitter:

The blockchain security firm PeckShield first spotted the attack and published a series of Tweets containing evidence of the security breach.

According to Cream Finance, attackers conducted “reentrancy attack” in its “flash loan” feature to steal 418,311,571 in AMP tokens and 1,308.09 in ETH coins.

“The AMP token contract implements ERC77-based ERC1820, which has the _callPreTransferHooks for reentrancy. Thank you @peckshield for assisting with this investigation.” states the DeFi platform.

Reentrancy attacks consist in withdrawing funds repeatedly before the original transaction is approved or declined.

According to PeckShield the attackers exploited a bug in the ERC777 token contract interface implemented by Cream Finance to interact with the Etherium blockchain.

DeFi attacks are becoming very profitable for threat actors, according to a recent post published by CipherTrace they totalled 361 million By July 2021 and accounted for 76% of all major hacks in 2021.

“By July 2021, DeFi-related hacks total $361 million, already making up three-quarters of the total hack volume this year—a 2.7x increase from 2020. DeFi-related fraud continues to rise, as well. At the time of this report, DeFi-related fraud accounted for 54% of major crypto fraud volume, whereas last year DeFi-related fraud only made up 3% of the year’s total.” states CipherTrace.

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Pierluigi Paganini

(SecurityAffairs – hacking, DeFi)

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Pierluigi Paganini

Pierluigi Paganini is member of the ENISA (European Union Agency for Network and Information Security) Threat Landscape Stakeholder Group and Cyber G7 Group, he is also a Security Evangelist, Security Analyst and Freelance Writer. Editor-in-Chief at "Cyber Defense Magazine", Pierluigi is a cyber security expert with over 20 years experience in the field, he is Certified Ethical Hacker at EC Council in London. The passion for writing and a strong belief that security is founded on sharing and awareness led Pierluigi to find the security blog "Security Affairs" recently named a Top National Security Resource for US. Pierluigi is a member of the "The Hacker News" team and he is a writer for some major publications in the field such as Cyber War Zone, ICTTF, Infosec Island, Infosec Institute, The Hacker News Magazine and for many other Security magazines. Author of the Books "The Deep Dark Web" and “Digital Virtual Currency and Bitcoin”.