Solana-based liquidity protocol Crema Finance had more than $8.78 million worth of cryptocurrencies stolen from its platform in an attack over the weekend, developers said in a tweet.
Crema said it had suspended its smart contract after the exploit. The protocol allows liquidity providers to set specific price ranges, add single-sided liquidity and conduct range order trading. This makes for a sophisticated and decentralized trading platform.
“We've been closely working with several experienced security institutes and relevant organizations to track the hacker's fund movements,” the developers said in a tweet.
Value locked on Crema plunged to $3 million on Monday from over $12 million on Saturday following the exploit, data shows. Crema has seen trading volumes of $1.34 billion since its inception in January.
The attacker started by creating a fake tick account. A tick account is "a dedicated account that stores price tick data in CLMM,” the developers said, referring to Crema's market-making protocol. After that, the attacker exploited a command by writing the data on the fake account and circumventing security measures.
The attacker then used a flash loan to manipulate the prices of assets on liquidity pools. This, along with the false data entries, allowed the attacker to claim “a huge fee amount out from the pool.”
Flash loans allow traders to borrow unsecured loans from lenders by relying on smart contracts instead of third parties.
The stolen funds were swapped to 69422.9 solana (SOL) and 6,497,738 USD Coin (USDC). The Solana-based USDC was then bridged to the Ethereum network via Wormhole and swapped to 6,064 ether (ETH). These funds amount to over $8.5 million at current prices.
The attacker’s Ethereum address, 0x8021b2962dB803b73Aa874030B0B42c202E8458F as flagged by blockchain scanning tool Etherscan, had not moved the stolen funds or converted to other coins at writing time, the data show.
All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities. CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.
Recommended Content
Editors’ Picks
US presidential election outcome could shape the future of crypto
US citizens will go to the polls to elect a new president on November 5, and their choice could be key for the future of the crypto industry and thus the price outlook for Bitcoin (BTC).
Bitcoin Price Forecast: BTC recovers as Donald Trump takes lead on polls
Bitcoin (BTC) slightly recovered to around $68,800 on Tuesday, following a shift in the United States presidential race that saw former President Donald Trump regain the lead, after US spot Bitcoin ETFs experienced an outflow of over $540 million on Monday.
Crypto markets brace for volatility in tight race between Trump and Harris
The US presidential election is one of the most significant events in the world. Due to the influence of the country’s political decisions, policies, and economic approaches, it can significantly impact crypto and global markets.
Trump-inspired memecoin MAGA shows bullish on-chain metrics ahead of US elections
MAGA (TRUMP) trades slightly down to around $3.4 on Tuesday after rallying more than 20% since Sunday. The former President Donald Trump-based memecoin is poised for further gains as daily active addresses and network growth metrics rise, signaling increased network usage and adoption
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.