Solana DeFi Protocol Crema Finance Halts Operations After a Hack

Solana-powered liquidity protocol Crema Finance has temporarily suspended its operations after a major hack led to the draining of a sizable amount of funds.

While the estimated loss is not yet confirmed by the DeFi platform, Crema Finance said it would soon release a postmortem report detailing what went down.

Meanwhile, Solana Indexer offered a breakdown of the movement of the stolen funds. As per the thread, hackers managed to activate 6 flash loans on the Solend protocol.

74,010 SOL was found to be shifted from the original wallet to another alternative wallet, which was then transferred in 5 batches to an ETH wallet, via Wormhole Exchange.

The expert put the stolen amount at $8.7 million.

Blockchain audit firm @osec_io too confirmed the findings and stated that it is working closely with the Crema team to help resolve this issue.

As for now, the hacker’s addresses have been traced and blacklisted on both Solana and Ethereum.

Several Hacks Has Marred The Solana Blockchain

In late March, another Solana protocol Cashio suffered a security breach leading to a complete collapse of its flagship stablecoin, CASH.

For those new, Cashio is a Solana-based DeFi application that allows users to mint CASH stablecoins. 

In this incident, the hacker exploited a vulnerability that enabled them to mint an infinite supply of CASH without having any sufficient leverage.

Per Defi Llama data, the hacker drained nearly $28 million worth of liquidity from the exchange. Saber posted an update announcing that it had stopped its CASH liquidity pools following the incident. 

As a result of the exploit, CASH, whose value is supposed to be pegged to the U.S. dollar, lost its value.

While the exact extent of the damage from the attack is still officially unknown, the renowned crypto security researcher known as samczsun on Twitter said that the losses amounted to about $50 million based on their “quick skim,” of the on-chain data.

The most notorious of them took place in Feb 2022 when one of the most popular bridges linking the ethereum and Solana blockchains lost more than $320 million.

Wormhole Incident was DeFi’s second-biggest exploit to date, and the largest-ever to hit the Solana blockchain.

Lipika Deka: Lipika is a crypto-journalist at TWJ. A graduate in economics and finance, she has a keen interest in the political and socio-economic facets of blockchain technology and the cryptocurrency industry.