Prisma Finance, a leading decentralized finance (DeFi) protocol, has fallen victim to a sophisticated hack, leading to a staggering loss of $11 million.
The team acknowledged the breach, revealing they immediately paused all protocol activities to facilitate a thorough investigation.
DeFi’s Prisma Finance Hacked
According to Cyvers, a firm specializing in the security of Web3 protocols, the attackers executed multiple transactions that resulted in the theft of 3,257.57 wrapped staked Ethereum (wstETH). Subsequently, the attackers converted these assets to Ethereum (ETH), signaling a calculated and targeted attack on the platform’s vulnerabilities.
An analyst from Cyvers detailed the attack’s mechanics. They explained to BeInCrypto how the perpetrators funded their operations through FixedFloat before deploying a malicious contract. Cyvers identified this contract two minutes before the initial exploit transaction, highlighting the attack’s rapid succession and execution.
The total damage has been estimated at $11 million, spread across six distinct transactions, but it could extend.
“It is more than $11 million now. It can go $20 million as there is still funds in the contract. We messaged Prisma Finance to pause their contract since it has pause function,” security researchers at Cyvers told BeInCrypto.
Read more: Identifying & Exploring Risk on DeFi Protocols
Prisma Finance is said to have halted operations and is investigating the breach to understand the gravity of the situation.
As the DeFi community awaits further updates and a comprehensive post-mortem from Prisma Finance, this hack serves as a critical reminder of the inherent risks associated with digital finance platforms. The importance of robust security measures and real-time detection capabilities has never been more evident.
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