DeFi security project ‘Lossless’ helps recover $16.7M from Cream Finance hack

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Decentralized finance, or DeFi, helped recover 5,152.6 Ether (ETH) that were withdrawn during the fundraising exploit that took place in August.

Twitter On Monday, Lossless identified white-hat security expert Pascal Caversacio as pivotal to the successful recovery of withdrawn funds.

As previously reported by Cointelegraph, a DeFi lending protocol, Kareem Funding suffered a $19 million fast loan attack in ETH and Amp tokens in August. After the exploitation, Karim stated that he would return the funds withdrawn through the fees collected on the protocol to compensate the affected users.

Detailing the asset recovery process, Lossless stated that it used its extensive contacts within the hacker world to enable the return of funds obtained during the quick loan attack.

Commenting on the redemption, Dominikas A. Van Outerloo, chief business development officer at Los Angeles, told Cointelegraph:

“We were able to manually track down the hacker and recover the stolen money for CREAM Finance. You could say it was kind of a cyber detective’s job, and it wasn’t an easy task. Thanks to Pascal Caversacio, one of our white hat hackers, who helped us track down the hacker.”

Lossless also mentioned that the project is looking to release a hack mitigation tool that will allow protocol developers to adopt a “workable” approach to preventing such malicious exploitation of their platform.

Part of that easing will reportedly include a 24-hour freeze on suspicious transactions to allow time for robust investigations.

According to Van Outerloo, Lossless makes use of the project’s knowledge base gained while manually tracking down hackers. Lossless plans to provide security support for DeFi projects across the Ethereum, Polygon, and Binance Smart Chain networks, and to deploy on Layer 2 protocols.

Related: The Perfect Storm: DeFi Hacking Will Drive Crypto Industry Forward

According to Cream Finance’s October 1 statement, Lossless and Caversaccio received a 50% error bonus from their successful refund. “This is our first recovery of this magnitude,” Lossless chirp In response to Careem Finance’s ad.

DeFi platforms continue to fall victim to hackers and opportunistic exploits who exploit vulnerabilities in smart contract codes to steal funds from these projects.

In fact, in August, Poly Network suffered a massive hack worth $610 million across multiple networks. The responsible entity eventually returned the stolen funds, but the incident provided an indication of the vulnerabilities prevalent in the DeFi space.

DeFi projects continue to offer bug bounties to white-hat hackers for discovering vulnerabilities that escaped the code audit process. In September, it was reported that white hat programmer Alexander Shlindwin received $1.05 million in bug bounty payments from Belt Finance.