Hackers stole $29 million from Cream Finance platform

On August 30, 2021, hackers stole over $29 million worth of crypto assets from the Cream Finance DeFi platform.

Experts write that an unknown hacker used a reentrancy attack against the flash loan function and eventually stole 418,311,571 AMP tokens from Cream Finance (at the time of the hack, about $25.1 million), as well as 1,308.09 ETH (approximately $4.15 million).

The term flash loan in this case refers to contracts on the Etherium blockchain that allow Cream Finance users to take quick loans from the company’s funds and then return them.

Reentrancy attacks work by flawing these contracts and allowing an attacker to initiate a repeated withdrawal of funds in a loop (before the original transaction is approved or rejected and the funds have to be returned).

The Record writes that the creator of the ZenGo cryptocurrency app and PeckShield have confirmed that the Cream Finance hack exploited an error in the ERC777 token contract interface that Cream Finance uses to interact with the underlying Etherium blockchain.

Let me remind you that we recently reported that Attackers stole $600 million from the Chinese DeFi platform Poly Network.