Alpha Homora’s decentralized liquidity protocol was hacked, during which hackers managed to withdraw $ 37.5 million in ETH.
To break the protocol, the attackers used the Iron Bank service of the CREAM Finance project, which allows issuing unsecured loans to trusted smart contracts. The hackers made the main smart contract Alpha Homora take the smart contract developed by the attackers for its own. Then they used this smart contract to get a loan in the CREAM Finance project for $ 37.5 million in ETH.
One of the conditions for obtaining a loan from CREAM Finance is either the availability of funds in the project vaults, sufficient to cover the loan, or insurance. Alpha Homora holds $ 1.6 billion worth of ALPHA tokens, so the loan was issued without additional checks. It is not yet clear if these tokens will be used to pay off the loan.
Developers Alpha Homora statedthat the vulnerability was discovered and closed, so that hackers would not be able to repeat the hack. The incident is currently being investigated jointly with CREAM Finance and the founder of the Yearn.Finance protocol, Andre Cronje.
Recall that, according to the analytical company CipherTrace, last year hackers were able to steal $ 1.9 billion worth of crypto assets.
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