Cream Finance has uncovered the AMP integration mistake that cost the protocol nearly $19 million and is working to compensate users.
Cream Finance, decentralized finance (Defi) network, will reimburse its users following an $18.8 million flash loan theft on Aug. 30. Cream has released a post-mortem on the AMP flash loan attack, offering to replace stolen Ether (ETH) and Amp (AMP) tokens by allocating 20% of all protocol fees until the debt is completely repaid. Cream will also place collateral with AMP and its founders, Flexa, to secure the debt.
According to the post-mortem study, this was the first time Cream Finance had been directly exploited, resulting in the loss of 462 million AMP tokens and 2,800 ETH. Cream discovered the vulnerability, with the support of blockchain security startup PeckShield, was created by a flaw in the protocol’s integration of AMP. “While this is unpleasant and upsetting, we accept responsibility for our error,” Cream stated.
Related: Cream Finance Loses $18 Million In Flash Loan Attack
Along with the primary issue, Cream uncovered a smaller copycat attack via a Binance cryptocurrency address with transaction history. The cryptocurrency trading platform is currently assisting Cream in identifying the second criminal.
Cream stated that it will cooperate with police in locating the attacker and prosecuting him “to the fullest extent of the law.” Additionally, the hacked protocol will pay a 10% bug bounty to the exploiter who returns the stolen cash. “If anyone can identify and provide information that leads to the arrest and conviction of the exploiter, we will split 50% of all cash recovered,” Cream added.
As previously reported, Cream suspended supply and borrow contracts on AMP on Aug. 30 to put an end to an exploit that enabled the attacker to get approximately $19 million in AMP and ETH by reborrowing assets in just 17 different transactions. Following that, the prices of both Cream’s native token, CREAM, and AMP fell precipitously, with AMP falling about 13%.
Following the hack, the impacted tokens’ prices continued to fall. CREAM is currently trading at $159, down 11% in the last seven days, according to CoinGecko. The AMP token has lost roughly 15% in value over the same time period, currently trading at $0.052525.
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