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- Cream Finance and Alpha Finance was under attack earlier on Saturday
- For the first time these DeFi protocols were affected
- Attack was worth more than $37.5 million
- Large chunk of the figure was the loan of 13,244 ETH tokens
Cream Finance and Alpha Finance are two DeFi protocols which a malicious actor has attacked. It is known that the attacker has been processing to net $37.5 million. The attacker had targeted the protocols earlier on Saturday. However, full details regarding the platforms are still not available, though it appears that the exploit was in Alpha Finance’s smart contracts. The protocol’s development teams are aware of the issues and are working on to fix it.
Cream Finance and Alpha Finance are affected the first time
The DeFi sector has suffered several attacks, and now yet another attack is being suffered by the space. This time Cream Finance and Alpha Finance are the protocols being affected by some evil actors. However, the team of Cream Finance has confirmed that it was investing for a potential exploit. Later on, the team tweeted that its smart contracts platform is usually working.
After Cream Finance, Alpha Finance announced an exploit. In the announcement, the protocol pointed out that the Alpha Hamora V2 seems to be the attack’s root cause. The Alpha team also confirmed that it was working with Andre Cronje and Cream Finance to investigate the issues. However, the team had paused borrowings from Hamora V2, although the loopholes had been patched before only. The Alpha Finance Lab also revealed that they have a prime suspect in their mind.
DeFi attack was worth more than $37.5 million
Following data from Etherscan transaction, it is observed that the attackers of the latest attack on Cream Finance and Alpha Finance have sent worth $37.5 million Ethereum via Tornado. It is found that the large portion of the figure was a loan of 13,244 Ethereum. On the other hand, the aggressor also appears to have sent 1000 Ethereum to both the Alpha Finance and Cream Finance deployers.
Following the news, the native crypto tokens of both Alpha Finance and Cream Finance, have tanked by more than 22% and 1.78% respectively. Both the platforms have confirmed that they will soon be sharing the post-mortem news. However, the latest attack is another case study showing decentralized finance is still in its nascent stages, and experimenting with such technologies is highly risky.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
