Fun

Cream Iron Bank $36M Flash Loan Attack: Markets Re-Enabled While Asset Borrow Is Paused

News Feed - 2021-02-17 04:02:59

Cream Iron Bank $36M Flash Loan Attack: Markets Re-Enabled While Asset Borrow Is Paused


Following the Cream Iron Bank flash loan attack, preliminary findings of a probe have shown that contracts and markets still function normally. As a result, markets have now been re-enabled while the asset borrowing function has been paused. The Cream team also reveals that investigations are continuing. The Exploit


After the exploit, the value of the Cream protocol token plummeted from just over $280 on February 12 to $186.48 24 hours later. At the time of writing, Messari data shows that the token had recovered although it has remained mostly under $230.



Meanwhile, in his analysis of the exploit, researcher Igor Igamberdiev reveals that the attacker(s) had “used Alpha Homora for borrowing Synthetix stablecoin from Ironbank.” He adds that “each time they (would) borrow twice as much as in the previous one.” The attacker(s), did this through two transactions and whenever they lend the funds back into Ironbank they would receive Yearn Synthetix stablecoin.


According to Igamberdiev, the attacker(s) had at some point secured a 1.8 million USDC flash loan from Aave v2. This flash loan was then swapped with Synthetix stablecoin for onward lending to Ironbank. Millions Siphoned


Using similar tactics, the attacker(s) would take out an even bigger loan. In his Twitter thread, Igamberdiev explains: Also, a $10 million flash loan is taken, which is also used to increase the number of Yearn Synthetix stablecoin. In the end, the number of their Yearn Synthetix stablecoin reaches an incredible amount, which allows them to borrow anything from Iron bank.


Consequently, the attackers went on to borrow stablecoins valued at $13.4 million as well as wrapped ETH valued at over $23 million.


At the time of writing, it had been revealed that the debt resulting from the attack “will not be between users and Alpha Homora.” Instead, it will be Alpha Homora and Iron Bank that will have to “find a solution that resolves the debt between the two protocols.”


What do you think needs to be done to prevent future flash loan attacks? You can tell us what you think in the comments section below. UN Report: North Korea Stockpiles $316 Million in Cryptocurrencies From Cyberattacks SECURITY | 6 days ago Expert warns Hackers are Targeting Russian Government"s IT Infrastructure to Mine Cryptocurrencies SECURITY | Feb 9, 2021 Tags in this story Aave, Alpha Homora, Defi protocol, Flash loan attack, Iron Bank, Stablecoin, USDC, WETH, Yearn


Image Credits: Shutterstock, Pixabay, Wiki Commons, Messari.io, Purchase Bitcoin without visiting a cryptocurrency exchange. Buy BTC and BCH here. Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments

News Feed

Bitcoin Blasts Past $98,000: Is $100K Next, Or A Trap?
Este artículo también está disponible en español. Bitcoin has soared past the $98,000 on Thursday, fueling intense debate among traders over whether the $100K milestone i
Ana Paula Pereira6 hours agodYdX raises margin requirements in some markets, bans “highly profitable trades”The decentralized exchange increased margin requirements on several markets on Nov. 18, after an alleged tar
SEC Enforcement Remains Focused on Crypto — Chair Gensler Says He’s ‘Impressed’ With Enforcement Results
SEC Enforcement Remains Focused on Crypto — Chair Gensler Says He"s "Impressed" With Enforcement Results The U.S. Securities and Exchange Commission (SEC) says its Enforcement Di
SEC busts CryptoFX for running $300M Ponzi scheme
Arijit Sarkar2 hours agoSEC busts CryptoFX for running $300M Ponzi schemeAccording to the SEC, CryptoFX allegedly targeted crypto investors from the Latino community across 10 U.S. states and two foreign countries.931 To
Bitcoin․com Exchange Market Insights Report for June 2022
Bitcoin․com Exchange Market Insights Report for June 2022 This is the June 2022 monthly market insights report byBitcoin.com Exchange. In this and subsequent reports, expect to f
GensoKishi Online “Meta World” Is Set to Transform Blockchain Gaming With Innovative Metaverse
GensoKishi Online "Meta World" Is Set to Transform Blockchain Gaming With Innovative Metaverse sponsored Metaverse is the trending concept in the blockchain industry due to its mass
US Senator Introduces ‘No Digital Dollar Act’ to Prohibit Treasury and the Fed From Interfering With Americans Using Paper Currency
US Senator Introduces "No Digital Dollar Act" to Prohibit Treasury and the Fed From Interfering With Americans Using Paper Currency A U.S senator has introduced the “No Digi
Cross-Chain Bridge Value Increases by 89% in Less Than a Month Surpassing $14 Billion TVL
Cross-Chain Bridge Value Increases by 89% in Less Than a Month Surpassing $14 Billion TVL 23 days ago on September 16, cross-chain bridges held around $7.79 billion total value loc
Bitcoin Will Break Out This Year, Says Devere CEO
Bitcoin Will Break Out This Year, Says Devere CEOThe CEO of financial advisory firm Devere Group believes that 2020 will be a breakout year for bitcoin, fueled by the U.S. president
Defi on Bitcoin Cash Gets a Boost- Smart Money Startup General Protocols Raises $3 Million from Investors
Defi on Bitcoin Cash Gets a Boost- Smart Money Startup General Protocols Raises $3 Million from Investors On March 1, the startup General Protocols announced the
Tokenizing music catalogs: The next frontier for Web3 and music industry
Savannah Fortis10 hours agoTokenizing music catalogs: The next frontier for Web3 and music industryAt the Proof of Talk 2024 conference in Paris, Serio Mottola, CEO of Music Protocol, advocated for integrating blockchain
Martin Young3 hours agoCelsius seeks court approval to start repaying customers by year-endThe embattled crypto lender is seeking final court approval for a restructuring plan that will start repaying creditors before th