You don’t change a winning team – Who says new week, says new hack DeFi! This time, it’s the turn of IronBank Protocol (CREAM) to take a $37.5 million loss. And as usual, this attack was carried out thanks to several flash loans.
Investing $15,000 to get $37.5 million out of it
It all started on Saturday, February 13, at around 9 a.m., when the IronBank protocol notified its users on Twitter that a loophole may have been exploited.
We are aware of a potential exploit and are looking into this. Thank you for your support as we investigate.
This announcement was closely followed by that of Alpha Finance Labs, DeFi protocol also having been a victim of the attack.
Specifically, the IronBank protocol was the target of a hack that drained $37.5 million out of its liquidity pools. The consequences for the project were disastrous. In the space of a few hours, the price of CREAM’s cryptography fell by 30%.
The details of the attack
The details of the attack were revealed thanks to Igor Igamberdiev, researcher for the media The Block.
IronBank ($CREAM) was exploited on $37.5M, let’s take a quick look at what happened.👇
1/ Attacker used Alpha Homora for borrowing sUSD from IronBank. Each time they borrow twice as much as in the previous one.
According to his analysis, this attack was once again carried out using flash loans.
Money already laundered
The attacker wasted no time once his real loan had been repaid and his falsely generated profits recovered: he embarked on a race to launder these stolen funds. He has already sent 220 ETH on Tornado Cash to launder some of the funds.
More surprisingly, 1,000 ETH have been sent back on the 2 attacked protocols.
To top it all off, the attacker donated 1,000 ETH to the Tornado Cash project via Gitcoin. 11,000 ETH are still outstanding in the attacker’s account. Will we ever see them again? Nothing’s less certain.
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