Despite security as a key concern for developers and users of crypto, developing safe and reliable protocols for transacting can still be exploited resulting in hacks and glitches that often lead to in loss of funds and confidence in project. As the influx of funds, attention and energy surrounding the cryptoasset community, the emergence of hackers and exploiters. However, Ethical hackers also known as White Hat hackers have also become more prevalent, these persons or entities will act on an exploit and then follow up by raising it with the developers, so they nefarious actors are unable to exploit customers/users. The White Hats are often compensated for their findings following the returned funds. Projects and developers who go experience hacks and exploits are forced to implement improvements despite the intention of the hackers, should their project adapt and overcome the exploit.
One project that was not fortunate enough to have an exploit manipulated by a White Hat hacker is Cream Finance. This project is a Decentralised Finance (DeFi) lending protocol and is part of the yearn.finance ecosystem. The project was targeted by exploiters that managed to perform a ‘flash loan’ attack which resulted in an approximate loss of $25 million at the start of this week. Cream Finance has already set in motion a plan to reimburse all users affected that had their assets stolen, which is mostly comprised of cryptoassets Ethereum (ETH) and AMP.
As the attack concluded, Cream Finance accepted full responsibility and made a statement ensuring that 20% of funding would be used to reimburse those affected. Following the statement, the organisation added that if the attacker where to come forward and return the stolen assets, they would receive a 10% bug bounty for their findings. They have also put forward a reward for up to 50% to anyone that supports the effort in retrieving the assets or provide information to assist in determining the identity of the attacker that could lead to a prosecution.
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