Prisma Finance Suffers Exploit, Drained $11 Million

Technology

Prisma Finance Suffers Exploit, Drained $11 Million – Crypto News

Published

1 year ago

March 28, 2024

Dripp

Decentralized lending protocol Prisma Finance has suffered a major exploit with losses above $11 million sparking concerns for the wider crypto community.

Blockchain security firm PeckShield flagged suspicious on-chain activity on March 28 with initial losses of $8.1 million. Following investigations, the total assets drained hit $11.6 million about 3,257 ETH.

Similarly, blockchain alert firm Cyvers reported similar activities on the network with claims of detecting a malicious contract before the hacking incident.

Prisma Finance Swings To Action

The team behind the projects acknowledged the incident in an X (formerly Twitter) post adding that core engineers will pause the project and investigate further ensuring users of feedback. In addition to this, the platform urged all users to beware of scam attackers using phishing links to make more gains.

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

“Following the exploit affecting several users’ vaults, Prisma Protocol has been paused by the emergency multisig and the remaining funds are safe. mkUSD and ULTRA, as stablecoins, are overcollateralized and are not at risk.”

In response to the platform’s post, a bad actor tried to redirect users to a phishing link by asking users to revoke all connections to their wallets.

“Due to the recent exploit, Prisma urges all users to revoke all connections to prevent loss of funds. All users who connected their wallets to the platform are at risk of future fund loss. Check exposure to the exploit and revoke now.”

Crypto Users Reacts to Infamous Incidents

Prisma operates as a decentralized finance (DeFi) staking protocol with investment from the founders of Curve and holds about $222 million in total value locked (TVL). The infamous incident has sparked debates among crypto enthusiasts recalling the recent scams inflicted on the sector.

Last year, scam numbers moved past $1.7 billion although there was a drop from 2022, a year riddled with industry implosions. These implosions dampened investor confidence and heightened regulatory scrutiny ushering in the bear market.

This year has seen more bad actor activities compared to 2023 in terms of figures. About 200 million has been lost to rug pulls and related crypto scans this year with a reduced number posted last year.