Crema Finance Team Announces Compensation Plan Following Attack

2022.07.09 14:41

Crema Finance Team Announces Compensation Plan Following Attack

• Crema Finance has come to an agreement with the hacker who stole $8.78 million from the platform.
• The team announced that they will take out 1.5% of the total hard-cap CRM.
• LPs can also withdraw their assets following the release of a withdrawal contract later next week.

The recent hack against Crema Finance, a Solana-based decentralized finance protocol, has left them with no choice but to shut down its liquidity services. Now, the team at Crema Finance has reached an agreement with the hacker responsible for the attack.

Crema Finance has recently announced that it has reached an agreement with the hacker who had drained the platform of $8.78 million worth of crypto last week. The hacker implemented a flash loan attack against the platform.

The team behind the DeFi protocol offered the attacker a generous bounty of around $800,000 immediately following the attack before contacting law enforcement authorities and launching an investigation into the attack.

The hacker was however able to negotiate a much bigger bounty of 45,455 SOL tokens, which is roughly $1.7 million at the current price. The hacker then returned roughly $7.6 million worth of stolen crypto.

According to a medium blog post released yesterday by Crema Finance “We have recovered the vast majority of stolen funds, and are gradually restoring the original asset portfolio.”

To all Cremates:https://t.co/ntyeVTGCv8

— CremaFinance (@Crema_Finance) July 8, 2022

The team added to the announcement that they will be opening an asset withdrawal contract sometime next week which will be audited by SlowMist. With this withdrawal contract, liquidity providers (LP) in pools involved in the attack will be able to withdraw 84% of their assets if. Meanwhile, LPs in pools not affected by the attack can withdraw 100% of their assets.

Lastly, Cream will take out 1.5% of the total hard-cap CRM (15,000,000 CRM) from the team’s allocation to compensate all users who lost their funds in the incident. These tokens will be vested linearly each month over the course of the next 12 months.