Cream Finance Plans To Repay The Stolen Funds To Its Users
Cream Finance is a decentralized finance protocol to repay users for the flash loan hack on its platform. The hack of nearly $19 million occurred on Aug 30, 2021.
Cream Finance puts news of a post-mortem to the massive exploitation of the AMP flash loan. The protocol promises to repay the stolen Amp (AMP) and Ether (ETH) coins.
It plans on footing its promise by allocating 20% of all the protocol fees until the debt is fully paid. Furthermore, the protocol will post collateral with the pertinent parties at AMP. It will also involve the Flexa digital payments network, the creators, for the security of the debt.
From the post-mortem report, this recent flash loan hack stands for Crean Finance’s first time to face direct hacking.
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This mishap caused the loss of about 2,800 ETH and 462 million AMP coins. Through the assistance of PeckShield, a blockchain security company, Cream Finance discovered the major cause of the hack.
The protocol uncovered that there’s an error in its means of AMP integration. Cream confirmed that though the situation is disappointing and unfortunate, it will solely bear the responsibility for its error.
Cream Finance Is Inspecting The Hack
Besides the massive exploit on its platform, Cream Finance has found a similar attack. However, this smaller move comes from an address with a history of transactions on the Binance crypto exchange. Binance is currently working together with Cream Finance to fish out this second attacker.
Cream revealed that it would cooperate with the necessary authorities to track the perpetrator. Furthermore, it will work with law enforcement bodies to prosecute the attacker using the full weight of the law.
Also, the hacked protocol will part with a 10% bug bounty to the attacker where they are ready to return the stolen assets.
Additionally, Cream appealed for public assistance in identifying the perpetrator or providing relevant information for his arrest and prosecution. The protocol pledged a ransom of 50% of returned funds for such assistance.
As recently notified, on August 30, Cream stopped supply and borrow contracts on AMP. This move closes the exploit that gave the attacker access to about $19 million worth of ETH and AMP from assets reborrowing within 17 different transactions.
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Following this recent huge exploitation, the prices of AMP and CREAM, the Cream’s native coin, have plummeted. The AMP value has suffered almost a 13% dip.
At the time of writing, CREAM is trading sideways | Source: CREAMUSD on TradingView.com
Furthermore, these affected coins now have continuous price dipping preceding the attack. For example, cream token CREAM has plummeted by 11% within the last seven days. The token now sells at $163.08 at the time of writing. AMP, being down also, is at $0.05275.
Featured image from Pixabay, chart from TradingView.com