August 30, 2021

Bilaxy, Cream Finance and xToken - three hacks in two days

Crypto exchange Bilaxy was hacked on the evening of August 28, the amount of losses is estimated at $21 million.

 On August 30 Cream Finance protocol was part of the attack, thanks to which hackers got about $20 million.

 On August 29, one of the xToken project contracts was hacked, stealing assets worth $4.5 million.

On the evening of August 28, the cryptocurrency exchange Bilaxy was hacked, resulting in 295 different tokens being stolen from its hot wallets. The amount of damage in dollar terms is not given, but the attacker's address received assets worth $21 million after the incident.

Immediately after the vulnerability was discovered, the exchange halted its website and took all necessary measures to move the remaining assets to cold addresses.

The platform will cooperate with law enforcement authorities to investigate the incident.

Two days after the Bilaxy incident, Cream Finance's decentralized lending protocol was part of an attack by which attackers were able to get their hands on 418 million Flexa Network (AMP) tokens and 1,308 ETH. If you consider the value of the stolen assets before the hack, the loss can be estimated at about $30 million. But if you consider the sharp drop in AMP price after the hack, the amount of damage will be less - about $20 million.

PeckShield analysts said the hacker took out an unsecured loan in ETH and took advantage of a "re-entry bug" in the Flexa Network smart contract. He made 17 transactions in which he obtained additional tokens through the vulnerability. He then liquidated his own loans. The AMP token is needed to secure payments on Flexa Network.

And another protocol hack. The DeFi-project xToken team revealed a successful attack on their contract on August 29.

Michael Cohen, founder of xToken, revealed that the attack was made possible by a callFunction that was publicly available, although it should only be called from the dYdX instant loan smart contract. The amount of damage is estimated at $4.5 million.

xToken has decided to drop the xSNX product entirely. A compensation plan for users will be presented in the future, which is currently being developed.

Jack Evans

About the author

I became a crypto asset owner in 2014, when the industry was in its infancy. Before that, I was working in the classic US and European stock markets. Since then, I have gained extensive experience in both cryptocurrency investing and day trading. I am happy to share with readers my experience with crypto exchanges, DeFi and NFT instruments. 

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