back to article Yet again, Cream Finance skimmed by crooks: $130m in crypto assets stolen

Decentralized finance biz Cream Finance became further decentralized on Wednesday with the theft of $130m worth of crypto assets from its Ethereum lending protocol. Cream (cream.finance and not creamfinance.com) reported the loss via Twitter, the third such incident for the loan platform this year. "Our Ethereum C.R.E.A.M. v1 …

  1. Anonymous Coward
    Anonymous Coward

    Dumb Money

    Several billion dollar transactions not requiring human confirmation on an insufficiently tested novel financial software instrument designed to enable people to get rich quickly. What could go wrong?

  2. Anonymous Coward
    Anonymous Coward

    Creaming off the top works !!!???

    When 'playing' with crypto currency and financial 'juggling' with crypto ..... at what point do you:

    1) Admit that it is all a lottery between the hackers & people running the crypto scam scheme.

    2) Admit that you have no 'Real' Money behind the crypto to cover the 'virtual' money being made/lost.

    How do you get financial backing for these things ?

    Why does anyone risk their money ..... or is it only 'other peoples money' ?

    Give me a nice simple Ponzi scheme anyday !!! :)

    1. Doctor Syntax Silver badge

      Re: Creaming off the top works !!!???

      It doesn't sound much like a lottery. The hackers are leaving nothing to chance.

  3. yetanotheraoc Silver badge

    Missing a step

    "The summary of the attack is that the attacker borrowed $1.5bn of Yearn’s yUSD vault shares against $2bn worth of collateral," he explained. "They then doubled the value of the shares atomically by donating yUSD to the yearn vault. This meant that their debt on Cream became $3bn against a $2bn collateral. They can now default and take home a sweet $1bn profit. Cream only had $130m assets available for lending, so the attacker was limited to $130m profits."

    An unclear point in the explanation -- how do they "undefault" to get back their $2bn in collateral? Because giving up $2bn to get $130m doesn't sound like a sweet deal.

    1. Anonymous Coward
      Anonymous Coward

      Re: Missing a step

      yetanotheraoc,

      "An unclear point in the explanation -- how do they "undefault" to get back their $2bn in collateral? Because giving up $2bn to get $130m doesn't sound like a sweet deal."

      I can only guess that the 'collateral' was not real or not theirs to use !!!

      It may be a means to convert 'Crypto' you cannot convert into 'Crypto' you can ..... $130m is better than $2bn of virtual money you cannot cash out as it is not real or belongs to a traceable wallet etc.

      $130m can be a useful sum to prime another scam etc.

  4. DJV Silver badge

    "the third such incident for the loan platform this year"

    3 losses in a year? Well, that's just careless. Have they tried looking down the back of the sofa?

    1. spold

      Re: "the third such incident for the loan platform this year"

      Once happenstance, twice coincidence, third-time enemy action.

      OK, probably just the latter. You might have learned.

      1. Pascal Monett Silver badge

        Once is hacking, twice is sloppyness, three is gross incompetence.

        They're lucky the Mafia didn't have any money there, 'cause if it had, they'd all be dead.

        1. Not Yb

          This is crypto... First second and third are "we probably did it to ourselves and are claiming innocence".

  5. aldolo

    how can these asset be sold?

    traceability is at the base of these assets. so, how can they be stolen and sold anonymously?

  6. YetAnotherJoeBlow Bronze badge

    Me thinks...

    This is starting to look like an internal job.

  7. Pascal Monett Silver badge
    Thumb Down

    "We apologize to our users and community for this unfortunate incident"

    $130 million is not an "incident".

    What is unfortunate is your belief that not using an industry that has over 1000 years of experience is a good idea. Banking rules were not made up, they are the product of everything that has already gone wrong and they are the guarantee that errors will be few and far between.

    Discarding that to reproduce the same mistakes and make new ones is not a good choice.

    1. Monty Burns

      Re: "We apologize to our users and community for this unfortunate incident"

      I'm sure that's what people said before the great financial sub-prime collapse.

      Has this been fixed so as not to happen again? No.

      All that has happened is "plasters" are now put over the damage to the value of $250k in the US, 50,000 GBP and probably some others. Many are above these limits and many countries still don't have such insurance schemes.

      To imply the financial system is almost entirely safe is complete bollocks.

      Now, instead of Fractional Banking crypto accounts 100% exist in their native currency. If I have 100 ETH I can withdraw 100 ETH (to a stablecoin or another token) when there is a "bank run" on ETH. Also, DeFi will lend out my tokens but instead of being at a ratio of 10:1 (lending out 10 for every one that exists) DeFi usually lends out at 1:1 or even 1:2!

      Debt secures debt which secures other debt. Insurance is reinsured then reinsured then reinsured again and again. Fractional banking means the bank can lend out 100 USD when it only has physical $10 USD in it's vaults.

      I'm not saying Crypto is perfect but, don't pretend the modern banking system is safe.

  8. stungebag

    Crypto Rules Everything Around Me

    Why would anyone, even if terminally stupid by normal standards, trust an organisation with such a stupid name?

    1. lglethal Silver badge
      Go

      Re: Crypto Rules Everything Around Me

      Simple. Greed and the belief that they are smarter than everyone else and can get out before the sky falls in...

    2. -v(o.o)v-

      Re: Crypto Rules Everything Around Me

      It is a pun on Wu Tang clan.

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