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Fraudsters are exploiting the decentralized borrowing platform Prism Finance (Finance), so far pulling $11.6 million in Ethereum (ETH). T
he team advised users to remain vigilant as core engineering contributors pause the protocol amid investigations.
Prisma Finance, the LSD stablecoin protocol invested by Curve founders and others, suffered a hacker attack, and the total loss has increased to approximately 3,257.7 ETH ($11.6 million). Official has paused the protocol and investigated. This is also the first major security…
— Wu Blockchain (@WuBlockchain) March 28, 2024
Prisma directed vault owners to suspend delegate approval to safeguard funds and promised more details for token holders after a post-mortem analysis.
Moreover, the borrowing network warned about phishing links and advised PRISMA investors to follow official communication only.
Also, blockchain security company PeckShield confirmed that the scammer siphoned wrapped stETH and Prisma mkUSD.
Meanwhile, web3 security firm Cyvers observed the suspicious activities first. It revealed that the fraudsters utilized FixedFloat crypto exchange to fund the hack.
🚨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… https://t.co/9myoV8DL22 pic.twitter.com/SxT5yYZy7U— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) March 28, 2024
PRISMA’s current price outlook
The native token reacted to the developments with sudden price declines. It traded at $0.3086 at press time, down 20% on the 24-hour chart.
PRISMA 1D Chart on Coinmarketcap
The altcoin will likely dip further as the downward sentiments linger. The latest update from the team stated,
“All users who connected their wallets to the platform are at risk of future fund loss.”
That could translate to continued bearishness in the upcoming sessions.
Prisma Protocol’s hacking incident reflects the increasing need for security in the nascent cryptocurrency market.
The post Prisma Finance (PRISMA) suffers $12M exploit; Protocol posed amid investigations appeared first on Invezz
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