Crema Finance Hacker Returns $8 Million in Stolen Crypto and Keeps $1.6 Million for Bounty

Crema Finance recovered a huge portion of the stolen crypto it detected over the weekend.

Crema Finance detected a system breach over the weekend that resulted in millions of stolen crypto.

On July 3, the DeFi protocol detected the first malicious activity in its system, signaling that it had already been breached.

Crema Finance suspended its liquidity services as soon as it became aware of the hack of its protocol.

It then took to Twitter to announce that it had discovered and was investigating the suspicious activity.

They then tweeted that they would temporarily close their system. Crema said, "We temporarily suspended the program and are investigating it."

Crema Finance Recovers its Assets

A white hat bounty in the amount of 16.7 percent of the total stolen crypto was negotiated by the Crema Finance team with the hacker who was responsible for stealing nearly $10 million in funds from the protocol.

A white hat bounty in the amount of 16.7 percent of the total stolen crypto was negotiated by the Crema Finance team with the hacker who was responsible for stealing nearly $10 million in funds from the protocol.

After the negotiations, the actor who compromised the Solana-based liquidity protocol was allowed to keep $1.6 million as a white hat bounty. However, he returned the majority of the stolen funds to the company.

Today, Crema Finance tweeted, "After a long negotiation, the hacker agreed to take 45455 SOL as the white hat bounty." Crema added, "Now we have confirmed the receipt of 6064 ETH + 23967.9 SOL in four transactions indicated below."

The company also stated that within the next two days, a revised compensation plan will be made available.

According to Cointelegraph, Crema's team started an investigation to find out who the hacker was by following the hacker's Discord handle and finding out where the gas for the hacker's address came from in the first place.

As the company recently tweeted on July 4, both the Solana and Ethereum addresses of the hacker have been discovered and publicly published.

As previously reported here in iTechPost, Crema closely investigated the incident, and their team was quick enough to detect the hacker.

They then went to Twitter exposing his Solana address as, Esmx2QjmDZMjJ15yBJ2nhqisjEt7Gqro4jSkofdoVsvY.

In addition, his Ethereum address was also detected as 0x8021b2962dB803b73Aa874030B0B42c202E8458F.

How Did They Hack Crema

Crema was able to reclaim its lost crypto after the hacker sent back 6,064 Ether (ETH) and 23,967 Sol on Wednesday, which together are worth around $8 million.

The funds were returned by the hacker through a series of transactions that took place on both the Solana and Ethereum networks.

The very first transaction on each network was merely a test with a minuscule amount of coins, but the subsequent transactions were worth the vast majority of the money that was sent.

Crema Finance is a liquidity protocol that operates on the Solana blockchain. Liquidity providers are able to add single-sided liquidity, set price ranges, and trade range orders as a result of the protocol's capabilities.

The team of the decentralized finance protocol now has the weight of the incident off their shoulders.

However, for this hacking incident not to happen again, the team has continued work to assure the safety of its network.

The company did just that. Crema stated that they had successfully achieved an agreement and that they had sent in updated code for review to assure that the same vulnerability would not be exploited again.