Cryptocurrencies have been predicted to be a game-changer in the financial sector. This is due to the assets’ numerous use cases, which indicate technical improvements in the industry. While the assets are considered as the next great thing, they must overcome several challenges. The problem of security in the industry has been a major roadblock. Hackers have had a field day in recent years, stealing millions of dollars worth of assets from various sites. Cream Finance was hacked in the latest DeFi assault. According to estimates, the hackers were able to steal $130 million worth of tokens.
This is the third time this year that Cream Finance has been hacked
This isn’t the first time this year that Cream Finance has been hacked. On the Ethereum blockchain, Cream Finance, a DeFi lending and borrowing mechanism, operate. According to Parkshield Inc’s assessment, the cream finance breach was a flash loan assault that resulted in the theft of largely the platform’s native token, Cream.
As previously stated, this isn’t the first time the network has been hacked this year; the initial incident resulted in the theft of $37.5 million in Cream tokens. The asset’s valuation plummeted due to the breach, losing about 30% of its worth in just one hour. The second incident, which took place in August, resulted in the theft of 418 million AMP tokens and 1,300 Ethereum tokens. The value of CREAM dropped by around 28% a few hours following the DeFi attack. According to CoinGecko, the token is now trading at $115.
To combat DeFi hacking, Gensler urges legislation
Cream Finance has fared badly in DeFi hack assaults, but it is far from the only platform in the pool. For example, Poly Network, an interoperability network, had its security hacked in August, resulting in $600 million in tokens. The Poly Network hack has now surpassed all past hacking attempts to become the greatest crypto heist ever.
DeFi hacks like these and others have prompted most market participants to demand that the decentralized financial industry be regulated. Gary Gensler, the US Securities and Exchange Commission head, recommended regulating the business a few weeks ago. If the sector is not controlled today, Gensler believes it will suffer a worse destiny in the future. At the Yahoo Finance Summit, a keynote speaker mentioned all of this and more.
In the DeFi industry, Gensler says he wants robust consumer protection legislation to protect both developers and consumers. He pointed out that there is a lot of buying and trading in the market that is not regulated. According to Gensler, the moniker DeFi is a misnomer because most tokens in the sector are still unregistered. If consumer protection legislation is introduced in the coming months, it can slow the rate at which DeFi hacks have become common in the industry.