Crema Finance closes the liquidity protocol in Solana amid the investigation into the hack

Crema Finance closes the liquidity protocol in Solana amid the investigation into the hack

Crema Finance, a Solana blockchain-focused liquidity protocol, has announced the temporary suspension of its services due to a successful attack that has drained a substantial but undisclosed amount of funds.

Shortly after becoming aware of their protocol being hacked, Crema Finance suspended liquidity services to prevent the hacker from draining their liquidity reserves, which include funds from the service provider and investors.

Speaking to Cointelegraph on the matter, Henry Du, the co-founder of Crema Finance confirmed the start of the investigation. He stated:

“We are working with some security companies and have the support of Solana, Solscan and Etherscan etc. We will continue to post any updates via the official Twitter account.”

While the company has yet to provide an update based on an investigation that was ongoing at the time of writing, the Crypto Twitter community took it upon themselves to track down the hacker’s wallet and gain a better understanding of the situation.

Based on personal research, crypto community member @HarveyMackinto2 allegedly discovered the hacker’s wallet address. The address in question contains 69,422.89 Solana (SOL) tokens, roughly over $2.3 million, obtained through a series of transactions over several hours.

However, other members of the cryptocurrency community suspect that the hacker made off with 90% of the total liquidity of some of the Crema Finance funds. Du too confirmed that all functions of the protocol have been suspended indefinitely and asked investors to stay tuned for more information in the form of an update.

Read:  Why can't banks in Argentina sell bitcoin anymore? This says the BCRA

Readers should note that Cream Finance is not related to Cream Finance, a decentralized finance DeFi lending protocol, which also lost $19 million in a flash loan hack last year.

North Korea’s hacker syndicate – the Lazarus Group – has become the prime suspect in a recent attack that took $100 million worth of Harmony protocol.

Investigations by blockchain analytics firm Elliptic affirmed North Korea’s involvement based on methods of laundering the stolen funds:

“There are strong indications that North Korea’s Lazarus Group may be responsible for this theft, based on the nature of the hack and subsequent laundering of the stolen funds.”

Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.

Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.