Prisma Finance, a decentralized liquid staking token protocol, has fallen victim to a significant exploit, leading to a loss of around $10 million in cryptocurrencies. The attack occurred on March 28, prompting an immediate response from the Prisma Finance team to halt the protocol and commence an investigation.
Detection and Response
The cybersecurity firm Cyvers was the first to detect suspicious transactions involving Prisma Finance, noting that the total loss had quickly approached $9 million, with an additional $1 million identified shortly after. The attacker managed to funnel these funds through the cryptocurrency service FixedFloat. In response to the unfolding situation, Prisma Finance’s core engineers and contributors paused the protocol to delve into the breach.
Escalating Losses
As the situation developed, on-chain security firm PeckShield reported that the attack was ongoing, with losses escalating to approximately 3,257.7 ETH (worth ~$11.6 million). PeckShield and Prisma Finance have urged vault owners and the community to stay vigilant and adhere to official notifications to avoid scams related to the exploit.
Scammers Capitalize on the Situation
In the wake of the attack, scammers have attempted to exploit the situation further. Under Prisma Finance’s official announcements, a fraudulent account with a deceptive golden badge tried to redirect users to a suspicious link. A closer inspection revealed no affiliation between this account and Prisma Finance, highlighting the need for heightened caution among users during such critical times.
Broader Impact on the Crypto Industry
The Prisma Finance exploit is part of a concerning trend in the cryptocurrency industry, with over $200 million lost to hacks and rug pulls in the first two months of 2024 alone. This figure marks a 15.4% increase from the same period in 2023, according to blockchain security firm Immunefi. In total, $1.8 billion was lost to crypto hacks and scams in 2023, with the North Korean Lazarus Group accounting for 17% of these losses.
The incident underscores the ongoing challenges and vulnerabilities within the decentralized finance (DeFi) ecosystem, emphasizing the need for robust security measures and vigilant community awareness to mitigate the impact of such exploits.
