Prisma Finance Hack Causes Platform Losses Over $11 Million

Key Points:

• The Prisma Finance hack caused an estimated loss of $11 million.
• Assets like Prisma mkUSD and wrapped stETH are stolen.
• Prisma halts operations and induces users to revoke connections while attackers swap funds to Ether.

On March 28, Prisma Finance, a liquid staking protocol, fell victim to a significant exploit, resulting in the loss of approximately $11 million worth of cryptocurrencies.

Prisma Finance Hack Occurs, Causing $11 Million Lost in Exploit

The Prisma Finance hack was first detected by Web3 security platform Cyvers, which noticed suspicious transactions indicating losses initially estimated at $9 million. The attacker allegedly utilized the crypto exchange FixedFloat to fund their activities.

Blockchain security firm PeckShield confirmed the Prisma Finance hack, identifying Prisma mkUSD and wrapped stETH among the stolen assets. Cyvers detected multiple suspicious transactions, with the attacker utilizing FixedFloat to finance their operations before deploying a malicious contract.

Prisma Suspends Operations as Attackers Swap Funds

Prisma Finance has acknowledged the breach, temporarily suspending protocol operations and launching an investigation into the incident’s severity. In response to the exploit, Prisma has advised users to revoke all connections to mitigate potential fund losses.

The attacker has already begun swapping the stolen funds to Ether, and the attack is still ongoing, as noted by PeckShield. The total loss has risen to approximately $11.6 million, prompting warnings to vault owners to remain vigilant against potential scams.

This incident adds to a concerning trend of crypto hacks, with over $200 million lost to hacks and rug pulls in 2024 across 32 individual incidents as of February 29, according to blockchain security firm Immunefi. Such events continue to undermine the credibility of the cryptocurrency industry. Recently, a game project on Blast also lost more than $62 million due to technical problems.