Decentralized Financial Logs (DeFi) Cream Finance and Alpha Finance fell victim to one of the biggest flash credit attacks of all time on Saturday morning, which resulted in a total loss of $ 37.5 million according to transaction details on Etherscan.
Two hours later, Cream said its contracts “are working normally” and the markets have been activated.
Alpha Finance then published its own announcement citing the Alpha Homora V2 product as the main cause. They confirmed that they are working with DeFi guru Andre Cronje and Cream Finance to investigate the incident and that the void has been closed. They also said they “have a prime suspect”.
Cream Finance had previously tweeted an update on the incident that it had suspended asset borrowing from Iron Bank’s recently launched credit function. This tweet has since been deleted.
This is the second attack on a defibrillator protocol in the past two weeks. Cearnjes Yearn Finance suffered an exploit in one of its DAI loan pools, according to the official Twitter account of the Decentral Finance (DeFi) protocol. This exploit cost $ 11 million.
This story evolves and is updated.
