According to transaction information on Etherscan, Decentralized Finance Protocols (Defi) Cream Finance and Alpha Finance were victims of one of the biggest flash loan attacks ever on Saturday morning, resulting in a loss of funds totaling $37.5 million.
Two hours later, Cream Finance stated that its agreements were "functioning as normal" and that markets were permitted.
Alpha Finance then posted its own announcement, saying the root cause was its Alpha Homora V2 product. The company confirmed that it is working on investigating the incident with DeFi guru Andre Cronje and Cream Finance, and that the loophole has been fixed. It also said that in mind they "have a prime suspect."
Earlier, an update on the incident was tweeted by Cream Finance saying that asset borrowing from its recently launched Iron Bank lending function was suspended. That tweet has been deleted since then.
This is the second DeFi protocol attack in the last two weeks. According to the official Twitter account of the decentralized finance protocol, Cronje's Yearn Finance experienced an exploit in one of its DAI lending pools. $11 million was drained by that exploit.
This story is developing and will be updated.
