Prisma Finance Suffers $10 Million Breach

Prisma Finance Suffers $10 Million Breach

Prisma Finance Suffers $10 Million Breach

DeFi system Prisma Finance suffered an exploit resulting in approximately $10 million worth of cryptocurrencies being stolen.

On March 28, hackers exploited the decentralized finance (DeFi) system known as Prisma Finance to steal cryptocurrency worth about $10 million.

Cyvers, an on-chain security alert service, was the first to discover the anomaly, according to a March 28th report about X:”

Our system has identified several transactions with @PrismaFi that are suspicious, and these transactions are still occurring! The total loss up to this point is approximately $9 million.

The financial support for the attacker comes from @FixedFloat! Additionally, our technology identified the bad contract two minutes before the hacking transactions.

Cyvers discovered an additional fraudulent transaction worth one million dollars not long after the initial notice was issued, raising the total amount of money that was exploited to close to $10 million.

Prisma Finance Suspends Protocol

Prisma Finance announced in a post on March 28th that its core developers and contributors will suspend the protocol and conduct an investigation.

According to DefiLlama, Prisma is a decentralized liquid staking token technology with a total value locked (TVL) of more than $222 million.

Immediately after the initial exploit, the perpetrator of the assault had reportedly already begun exchanging the stolen cash for Ether, as stated by Cyvers.

The on-chain security company PeckShield stated in a post that was published on March 28 at 12:28 p.m. UTC that the attack is still ongoing:

“The attack is ongoing, with the total loss now increased to ~3,257.7 $ETH (worth ~$11.6 million). To vault owners, please follow up on notifications from the official source and be cautious about scams.”

As can be seen in the image that PeckShield provided, further con artists are attempting to take advantage of the exploit. Prisma Finance’s official notification reveals that a fraudulent Prisma Finance account with a golden badge is trying to trick people into clicking on a dubious link.

Prisma Finance Suffers $10 Million Breach
Peckshield Alert. Source: PeckShield

After a more thorough investigation, it becomes apparent that the bogus account is not associated with Prisma Finance. Cryptocurrency hacks continue to undermine the industry’s credibility and validity.

The blockchain security company Immunefi reported that as of February 29, hacks and rug pulls resulted in the theft of over $200 million worth of cryptocurrency in 2024.

A 15.4% rise in the amount of digital assets stolen is represented by a loss of nearly $200 million compared to the amount stolen in January and February of 2023, which was $173 million.

Immunefi published research on December 28th, revealing that hackers and scammers in the cryptocurrency industry caused a total loss of $1.8 billion in 2023. The North Korean Lazarus Group may be responsible for 17% of this amount.

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