DeFi Exploit, GameFi Rug Pull, and Accidentally Closed Exchange – Things to Look Out For With Cryptocurrencies

Home » DeFi Exploit, GameFi Rug Pull, and Accidentally Closed Exchange – Things to Look Out For With Cryptocurrencies

A play-to-earn (P2E) GameFi project's developers may have yanked the rug out from under its investors in the span of just 24 hours, and a Solana (SOL)-powered exchange accidently shut itself down, all of which serve as reminders of the hazards involved in the cryptocurrency field.


A “bug caused by [the] AMP” token allowed hackers to take advantage of the DeFi lending platform Cream Finance on Tuesday, according blockchain security company PeckShield.


“The hacker deposits the money as collateral for a flash loan of [ETH 500 (USD 79,000)]. After borrowing [$AMP 19m], the hacker uses the reentrancy bug to borrow [ETH 355] once again inside of the $AMP token transfer. The hacker then pays off the loan by himself, PeckShield continued.

The hacker carried out this procedure a total of 17 times to earn ETH 5,980, according to the security firm (USD 9.5m).

According to Cream Finance, who acknowledged the hack, the attack was stopped by “pausing supply and borrow on AMP.”

HeroCat, a GameFi (P2E blockchain-powered games) startup, seems to have duped its investors in the meantime. According to data from CoinGecko, the game's token, HeroCat Token (HCT), has lost more than 99.9% of its value during the past week.

According to PeckShield, HCT, a Binance Chain-based cryptocurrency, “made a big sale and transferred” about USD 151,000's worth of the Binance USD (BUSD) stablecoin. HeroCat has not yet provided any updates on the situation.

Additionally, a Solana-based DeFi project unintentionally shut itself down as a result of a programming error. According to “Decentralized options exchange” OptiFi, the project was shut down yesterday during a routine upgrade.

The project's official Twitter account stated, “We unintentionally stopped the OptiFi mainnet program and it's not recoverable,” adding that the error cost USD 661,000 in funds, the majority of which came from team members.

Additionally, a Solana-based DeFi project unintentionally shut itself down as a result of a programming error. According to “Decentralized options exchange” OptiFi, the project was shut down yesterday during a routine upgrade.

The project's official Twitter account stated, “We accidentally closed the OptiFi mainnet program and it's not recoverable” adding that the error cost USD 661,000 in funds, the majority of which came from team members.

The team said in a post-mortem that they had planned to upgrade the protocol on August 29 but had to postpone the operation because network congestion caused the deployment to take longer than anticipated. They subsequently discovered that OptiFi had already moved slightly more than SOL 17.2 (USD 558) tokens to a new “buffer” account that had been formed.

To get those assets back, the team tried to end the OptiFi program. The plan was successful, however the initiative was permanently terminated rather than just temporarily.

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