Massive Rug Pull Threatens GameFi Project As DeFi Protocol Faces Hack

The rate at which hackers target the decentralized ecosystem is rising daily. After a recent rug pull, the market value of a famous play-to-earn blockchain platform, the GameFi initiative, dropped by 99%. Similarly, another DeFi network lost millions to the recent attack on its platform.

Moreover, the blockchain security and analytic firm PeckShield Alert posted on Twitter that, HeroCat, displays indications of a possible rug pull. In addition, data from CoinGecko revealed that its token, the HeroCat Token (HCT), has shed over 99.5% in the same period.

Similarly, over the past 24 hours, the price of HCT has plummeted to $0.00002 from a high of $0.0097. The token’s all-time high was about $0.22 last December. The token’s transaction volume peaked at $3.8 million, though it is currently less than $500, according to CoinGecko data.

As per PeckShield Alert, the Binance Chain (BNB Chain) coin, HCT, has “made a significant sale and moved” roughly $151,000 in BUSD. The intruder moved the assets from one address to another.

HeroCat GameFi is yet to state the present status of the event, according to sources familiar with the incident.

How Cream Finance was Hacked

Another report from the blockchain security firm indicates that hackers hacked another DeFi network named Cream Finance on Tuesday. The hackers exploited the platform by taking advantage of the bug on the AMP token on the platform.

Afterward, the attacker initiates a 500 ETH flash loan and uses the assets as security. In addition, the hacker decided to borrow 19 million $AMP tokens and exploited the reentrancy issue to reborrow another 355 ETH during the $AMP asset exchange. The hacker finally liquidates the borrowed funds.

A statement from the firm shows that the attacker had to replicate the above method more than 15 times to earn 5,980 Ethereum (ETH), valued at around $18.8 million in fiat.

Cream Finance also stated that it halted the invasion by “delaying supply and borrowing,” and praised PeckShield Inc.’s help with the inquiry.

The DeFi platform further explains that the attack resulted in 418,311,571 AMP tokens valued at $2.7 million in loss and 1,308.9 ETH (equivalent to $2.08 million).

Frequent DeFi Attacks

Over the years, attackers have identified decentralized finance platforms as their new abode when it comes to hacking. The large volume of funds held by DeFi platforms is one of the key reasons these entities are attracted to the sector.

Furthermore, major DeFi platforms handle billions of dollars in deals every month. As a result, the benefits for hackers who can carry out coordinated cyberattacks are enormous.

However, a cursory look into the open source protocol codes in most DeFi platforms makes them more prone to attacks.

Due to their nature, open-source applications are accessible to the general public and can be inspected by anyone with internet access.

As a result, they are greatly compromised. Because of this inherent attribute, hackers can easily assess DeFi apps for integrity issues and strike at the right time.

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