Crema Finance Suspends Liquidity Services After Being Hacked
- Crema Finance has not offered any official insight into the recent hack as of this writing.
Crema Finance announced that it suffered a hack that successfully siphoned off a sizeable but undisclosed quantity of funds. The Solana-based concentrated liquidity protocol has temporarily suspended its services. Crema Finance immediately ceased the liquidity services after becoming aware of the breach in its protocol. The platform made this move to stop the hacker from depleting its liquidity reserves, which include investor and service provider cash.
Crema Announced on Twitter,
Attention! Our protocol seems to have just experienced a hacking. We temporarily suspended the program and are investigating it. Updates will be shared here ASAP.
The liquidity provider did not offer more details about the situation but eagle-eyed crypto users found a way to track the scammer’s wallet address to better understand the extent of the damage.
Twitter user @HarveyMackinto2 apparently discovered the scammer’s wallet address after doing his own research. The address in question is home to 69,422.89 Solana (SOL) tokens, which are worth just over $2.3 million after many hours of transactions.
Other users believe the hacker stole 90% of the total liquidity from a few of Crema’s pools. Co-founder of Crema Finance Henry Du acknowledged that all protocol functions have been put on indefinite hold and urged investors to check back for an update for further details.
The Rise of Crypto Hackers
This has been one of the worse years for DeFi protocols having suffered the most at the hands of hackers. But DeFi isn’t the only one feeling the heat, it’s becoming a general concern for the entire crypto industry. Over the past few weeks, cryptocurrency scammers and hackers have been having a field day, attacking Stablecoins, cryptocurrency wallets, and online games from all angles.
Crypto assaults alone cost protocols including Bitmart, Visor Finance, Vulcan Forged, and Grim Finance more than $600 million in December 2021. Scammers have made billions by compromising some of the biggest DeFi platforms and cryptocurrency exchanges. Some victims were able to reclaim the stolen funds, however, not everybody got lucky. Many people completely lost their assets.
DeFi, platforms with terrible security are frequently targeted by hackers, according to cybersecurity experts. DeFi services are often based on open blockchains, enabling users to exchange cryptocurrency without requiring the assistance of a reputable financial organization like a credit union or a bank.
Mitchell Amador, CEO at cybersecurity auditing firm Immunefi, once remarked that crypto hacks would be on the constant rise if measures were not taken to improve security. He said,
We should expect these types of [sophisticated] attacks to continue to increase, as more and more criminal organizations build DeFi-hacking skills in-house. Furthermore, as DeFi gets bigger and bigger, these kinds of attacks become more and more lucrative.
Security remains a big concern on many protocols. DeFi service providers have to find ways to improve their security if they want to see hacks reduce.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
