Crema hacker returns $8M, keeps $1.6M in deal with protocol

The hacker who exploited Solana-based liquidity protocol Crema Finance on July 2 returned many of the funds however was allowed to maintain $1.6 million as a white hat bounty.

The bounty, 45,455 Solana (SOL), is price a beneficiant 16.7% of the $9.6 million Crema misplaced initially, which pressured the protocol to droop companies.

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Crema’s staff started an investigation to establish the hacker by monitoring their Discord deal with and tracing the unique gasoline supply for the hacker’s deal with. Simply because it appeared the staff might have been onto the key identification, it introduced that it had been negotiating with the hacker. On Wednesday, the hacker returned 6,064 Ether (ETH) and 23,967 SOL price roughly $8 million.

After a protracted negotiation, the hacker agreed to take 45455 SOL because the white hat bounty. Now we now have confirmed the receipt of 6064 ETH + 23967.9 SOL in 4 transactions indicated under. A follow-up compensation plan shall be launched in 48h.

— CremaFinance (@Crema_Finance) July 6, 2022

The hacker returned the funds in a collection of transactions on Ethereum and Solana networks. The primary transaction on every community was a check with a negligible quantity of cash, whereas the next was price nearly all of the funds despatched.

Customers of Crema and the staff have cause to relaxation simpler now that the funds have been secured, however there’s nonetheless work to do. The staff introduced on Tuesday earlier than the deal had been reached, that it submitted new code for auditing to make sure that the identical exploit didn’t occur once more.

Though the neighborhood awaits an official autopsy on the assault, the Crema staff outlined what occurred in a Sunday thread on Twitter. The attacker took out a flash mortgage from the Solend decentralized finance (DeFi) lending protocol, which was added as liquidity to a Crema pool.

The hacker then fabricated pricing information to make it appear as if they have been owed a a lot greater reward than they need to have. This allowed them to take “an enormous charge quantity,” price about $9.6 million from the pool to, which they added the flash mortgage.

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The Crema protocol shall be again up and operating after the audit is full, according to the staff’s tweet. The staff may also situation a compensation plan for affected customers by July 8.

Crema is fortunate to have recovered as a lot of the funds because it did, contemplating the calamity that befell the Horizon Bridge on Concord final month. A hacker stole $100 million in crypto from Concord’s token bridge and rejected the $1 million white hat bounty to return the funds.