DeFi News

PancakeSwap, Cream Finance and Reef Finance: 3 Problems in 1 Day

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It is well-known that the DeFi world is still prone to attacks by hackers and manipulative traders. At the moment, decentralized finance is still a small niche where it is easy for small investors to suffer problems. Yesterday we saw several issues that we will now outline and describe what really happened. Always be vigilant when investing in DeFi products and do not invest what you cannot afford to lose (the rule applies to every investment in your life). 

PancakeSwap – Phishing Attack

The most popular exchange on the Binance Smart Chain was targeted with a phishing attack that tried to steal users’ private keys. The hackers changed the domain DNS, using their own DNS and added a window asking for the 12 words of wallets. Fortunately, this attack is now recognized by most people, so no major damage was reported. Imagine what would have happened if the hackers had asked for access to your wallet for a smart contract proxy or had used more professional techniques. The damage would have been irreparable! It seems that both PancakeSwap and Cream Finance were registered via GoDaddy. One possible explanation for this incident is that the hackers somehow managed to breach the company’s security so that they changed the DNS routing point for both domains. In short, make sure you always follow the official social channels of the crypto and DeFi projects you use so you know if there are any problems going on!

Cream Finance – Problem after Problem

Cream Finance suffered the same attack as PancakeSwap but in this case, the problem is even more serious as the product was already under attack a few weeks ago. Furthermore, a few days ago Cream Finance was also personally attacked by Andre, the founder of YFI and Yearn Finance, with a tweet which he later removed as the CREAM token was losing so much value on Binance and various exchanges. In short, the fate of Cream Finance seems to be very unfortunate, let’s hope that sooner or later they can clear their name of all these disasters. Hold on tight!

Reef Finance and Alameda Research: The Explanation

Unfortunately, PancakeSwap and Cream Finance were not the only products under attack yesterday. Reef Finance was also publicly attacked by the FTX Exchange and Alameda Research with heavy accusations of ”rug pull” and threats to delist the token from their exchange. These tweets caused immediate damage to the token which lost 20-25% on Binance in a matter of minutes. Soon after, however, the founder released an explanation on Medium, saying that Reef and Alameda Research had agreed to a long-term partnership where Alameda could buy REEF tokens OTC at a 20% discount for a sum of $80 million. In return, Alameda would integrate Reef into Raydium, Serum and other projects managed by Alameda Research. Unfortunately, REEF noticed that after the first $20 million, Alameda started selling the tokens right away on Binance, demonstrating that they had no interest in holding the token long-term but only in making quick profits. In short, the classic manipulative trader who tried to destroy a new project. Fortunately, people can now recognize these wrongdoings early on, so REEF is already returning to stable prices!

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