Bad news for Solana: a liquidity protocol lost over $ 8 million in cryptocurrencies!

Another bad news for the Solana blockchain. As we explained in a previous article, the Solana blockchain has seen several major technical problems in the last few months, 7 in total since September 2021, to be exact.

Once again a a new problem appeared. This time around, it’s a liquidity protocol that’s built on the Solana blockchain it has lost over $ 8 million in crypto assets !

This Sunday, July 3, 2022, this protocol’s twitter account confirmed the hack and directly announced the suspension of their service while opening an investigation to find out what really happened.

What is this Solana blockchain-based protocol that has lost over $ 8 million?

The protocol in question is CremaFinanza, this protocol was built on the Solana blockchain and lost the exact sum of $ 8.7 million worth of cryptocurrencies. But how did this hack happen?

Hacking explained by the Crema Finance team

On July 2nd, a vulnerability in the ticks account caused an exploit @Crema_Finance for a total amount of $ 8,782,446. We worked closely with the Crema team alongside @osec_io to break down the movement of stolen funds following the exploit. 🧵 https://t.co/3MdXqEalu8

The team explained that the hacker first created a file profile fake check mark, which is a dedicated account that stores price tick data in a Concentrated Liquidity Market Maker (CLMM). Hence, this same hacker of skip the verification process by entering the tick address initial of the pool on the fake account.

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The Crema Finance team explains: “In CLMM, the calculation of the transaction fees is mainly based on the coche account data. Therefore, the authentic data of the transaction fees have been replaced with false dataso the hacker completed the theft by claiming a large sum of compensation from the pool “.

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