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Prisma Finance Reportedly Hit by $9M Hack: What to Know

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Prisma Finance Reportedly Hit by $9M Hack: What to Know

Reports have emerged indicating that DeFi platform Prisma Finance, fell victim to a hacking attack amounting to approximately $9 million. Cyvers, a web3 security platform, raised the alert after it detected suspicious transactions linked to the breach.

🚨UPDATE🚨Our system has detected multiple suspicious transactions with @PrismaFi and still ongoing!

Total loss so far is around $9M. Attacker has funded by @FixedFloat!

Our system has detected the malicious contract 2 min earlier than hack transactions!👇

Our system would…

— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) March 28, 2024

Initial estimates suggest a loss of $9 million, with the attacker reportedly utilizing funds from the crypto exchange FixedFloat.

Backing up Cyvers’ findings, blockchain security firm PeckShield has confirmed the attack, providing details on the assets targeted by the hacker. Among the stolen assets are Prisma mkUSD and wrapped stETH.

In response to the breach, Prisma Finance issued a statement on X acknowledging the potential exploit. The project reportedly halted its protocol operations to conduct a thorough investigation into the incident.

Additionally, Prisma Finance advised vault owners to disable delegate approval as a precautionary measure.

We are aware of a possible exploit on Prisma.

Core engineering contributors will pause the protocol and investigate.

We’ll share an update and a post-mortem.

— Prisma Finance (@PrismaFi) March 28, 2024

From DeFi Future to Security Concerns

Prisma Finance was initially hailed as the future of decentralized finance (DeFi), offering solutions in the form of a new LSTFi protocol. It enabled users to mint a fully collateralized non-custodial and decentralized stablecoin, mkUSD, using Ethereum liquid staking tokens (LSTs) as collateral.

However, the recent exploit paints a stark contrast to the platform’s previous reputation, raising concerns regarding cybersecurity in the DeFi space.

Rising Trends in Crypto Hacks

The hack on Prisma Finance adds to a concerning trend in the cryptocurrency space. According to a Feb. 29 report by blockchain security firm Immunefi, over $200 million worth of cryptocurrency was lost to hacks and rug pulls last February, across 32 individual incidents.

This represents a 15.4% increase compared to the same period in 2023. Ethereum remains the most targeted blockchain, with 12 attacks accounting for over 85% of the total value lost in February.