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Prisma Finance Hit by $11 Million Exploit
Prisma Finance, a leading decentralized finance (DeFi) protocol, recently experienced a sophisticated hack involving the FixedFloat exchange, resulting in a loss of $9 million. The protocol team has taken immediate action to address the breach and investigate the attack.
Cyvers Alerts Detect Suspicious Transactions
Cyvers, a Web3 cybersecurity firm, was the first to detect suspicious transactions related to Prisma Finance. The attacker, allegedly funded by FixedFloat, executed multiple transactions resulting in the theft of 1,965.39 wrapped staked Ethereum (wstETH), initially valued at around $9 million.
PeckShield Confirms Attack
Blockchain security firm PeckShield confirmed the attack, revealing that Prisma mkUSD and wrapped stETH were among the stolen assets. The attackers then converted these assets to Ethereum (ETH), indicating a calculated and targeted approach to exploiting vulnerabilities in the platform.
Increased Stolen Funds
Following the initial alert, PeckShield reported an additional $1 million in fraudulent transactions, bringing the total stolen funds close to $11 million. They advised vault owners to stay vigilant and follow official notifications to avoid falling victim to scams.
Prisma Finance Responds
In response to the exploit, Prisma Finance engaged with its community to provide updates on the situation. The core engineering contributors paused the protocol to conduct a thorough investigation and urged users to revoke all connections to prevent further loss of funds.
DeFi Sector Challenges
Prisma Finance’s incident is part of a larger trend in the DeFi sector, which has seen significant losses due to hacks and scams. According to reports, the crypto industry suffered $336.3 million in losses during the first quarter, with DeFi platforms being prime targets for hackers.
Despite the challenges faced by the DeFi sector, efforts are being made to recover stolen funds and enhance security measures to prevent future exploits.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
