Crema Finance Closes Liquidity Protocol in Hack Investigation

Based on the Solana blockchain, a concentrated liquidity protocol called Crema Finance, recently announced that it was suspending its services temporarily. This was because of a hack on its platform that had managed to drain a substantial amount of funds, which it chose not to disclose.

Liquidity services suspended

Liquidity services were suspended by Crema Finance as soon as it realized that its protocol had been hacked. This was done to ensure that the hacker could not drain money from its liquidity reserves, as these include the funds deposited by its investors and service provider.

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The co-founder of Crema Finance, Henry Du, disclosed that they had begun an investigation into the matter. He stated that they had gotten in touch with security companies and Etherscan, Solscan and Solana had also offered their support. He also asserted that they would share any relevant updates with their clients via Twitter.

The hacker

Even though the protocol did not provide any information about the hacker, the crypto community decided to launch an investigation into the hacker as well. Their target was to find the wallet of the hacker, as this would give them a better idea of the situation.

One member of the crypto community conducted his own investigation and was able to identify the wallet address of the hacker. The particular wallet address comprises 69,422.89 Solana (SOL) tokens that were acquired through multiple transactions that were conducted in several hours. The total value of these tokens at the time of writing was $2.3 million.

However, there were some members of the crypto community who believed that the hacker had been able to steal about 90% of the liquidity from some of the pools of Crema Finance. Henry Du also confirmed that they had suspended all operations of the platform indefinitely and asked investors to keep an eye out for updates.

Possible suspects

The first thing that people should be aware of is that Crema Finance is not connected to Cream Finance in any way. This is a lending protocol in the decentralized finance (DeFi) space, which had also suffered from a flash loan hack in the previous year, resulting in losses of $19 million.

Furthermore, the Harmony protocol was also compromised recently in the DeFi ecosystem and it lost a $100 million in funds. Lazarus Group, which is a hacking syndicate operating out of North Korea, is believed to be responsible for this hacking attack. Elliptic, a blockchain analysis company had carried out an investigation and it analyzed the laundering methods that were used for dealing with the stolen funds.

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According to the company, this is what indicates that it was Lazarus Group that had carried out the hack. It is no secret that North Korea has taken an interest in cryptocurrencies, as these digital assets are considered a great way of getting around the sanctions that are imposed on the country. Moreover, the North Korean government is believed to use these funds for its military operations.