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Cream Finance Has Been Hacked For The Third Time, Resulting In A Loss Of About $130 Million

Cream Finance, a DeFi lending protocol, has been hacked for more than $130 million, marking the system’s third theft.

 

Cream Finance was hacked, resulting in a loss of more than $130 million. This is the third time the DeFi protocol has been compromised. Cream Finance is an Ethereum network-based lending and borrowing technology.

PeckShield Inc. classified the incident as a flash loan, which resulted in the theft of primarily Cream tokens, CREAM.

This is far from the first time the DeFi protocol has been targeted.

In February, hackers stole $37.5 million in a flash loan assault, causing the price of CREAM to plummet by 30% in just one hour.

Cream was attacked again in August, with the protocol being implicated in a multi-million dollar exploit that resulted in an attacker stealing more than 418 million AMP—the Flexa Network’s native token—and nearly 1,300 Ethereum.

At the time of publication, CREAM had dropped by another 28% as a result of today’s onslaught. According to CoinGecko, the token is currently trading at $113.63.

While Cream Finance has been targeted on multiple occasions, it is far from the first DeFi platform to meet a similar fate.

The interoperability protocol Poly Network was attacked in August, and the criminal made off with $600 million in stolen assets. This is the most significant hack in DeFi—and crypto—history.

Frequent thefts like these have spurred observers, including Securities and Exchange Commission Chair Gary Gensler, to urge for better consumer protection in the DeFi industry.

Gensler stated earlier this week at the Yahoo Financial All Markets Summit that the decentralised finance field will not end well unless strong consumer protections are implemented.

“There’s a lot of lending going on. There’s a lot of trading going on. And without protections, I fear that it’s going to end poorly,” he said.

Previously, Gensler called the word “DeFi” a “misnomer,” implying that many tokens in the DeFi sector could be unregistered securities.