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Solana’s Liquidity Protocol Crema Finance shuts its operations; Market crash or something else?


www.thecoinrepublic.com 03 July 2022 11:00, UTC
Reading time: ~2 m

Ironically, one of the most effective ways to refrain the funds drain out of the institution, is to shut down the operation itself.

For the past several weeks, many crypto firms and related institutions have witnessed shutting down operations amidst a crypto market crash. Crypto lender Celsius shutting down its operations on the platform, including withdrawals of digital assets given market crash while Voyager Digital suspending operations as it needs time to explore new strategic alternative ways to preserve their assets, are among such examples. 

Yet another crypto protocol reported to close down its operation but maybe the reason for this is somewhat different. Prominent liquidity protocol based on Solana Blockchain, Crema Finance announced protocol’s about to suspend its services temporarily. This decision of Crema Finance came in the wake of a successful attempt to exploit the protocol that ended up loss of a significant amount of funds from the protocol, however there is no information disclosed regarding the amount. 

As soon as the team behind liquidity protocol found out about the hack, it quickly responded and took action while suspending liquidity services on the protocol. This would have prevented the attackers on Crema Finance from stealing more funds from its liquidity reserves, which included the funds belonging to investors and service providers, and so it did stop further damage. 

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However, there has been no update provided by Crema Finance about the investigation and what’s the result until now. But what’s known is that the crypto community on Twitter took on to track down the wallet of the hacker to understand the situation better.

Their personal investigation has also brought some crucial information as some crypto community members even alleged that they had stopped the wallet address that belonged to the hacker. The suspicious wallet has about more than 69,422 Solana (SOL) tokens, that value for more than $2.3 million and has even shown to be obtained through several transactions in just a matter of several hours.

While several others have claimed that hackers had successfully managed to take away about 90% of the overall liquidity from the liquidity pool of Crema Finance. Co-founder of Crema Finance, Henry Du has also confirmed that entire functions of the liquidity protocol have been frozen for indefinite time and also it was asked to investors and users of the platform to stay in touch for any further information or update on the same. 

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