TL;DR
- Prisma Finance suffered an exploit on March 28, resulting in an initial loss of around $10 million in cryptocurrencies.
- Cyvers, an on-chain security alert provider, detected the incident and alerted about multiple suspicious transactions.
- The protocol’s engineering team announced a thorough investigation and paused the protocol to address the security issue and protect user funds.
On March 28, the Prisma Finance protocol was affected by an exploit resulting in the loss of around $10 million in cryptocurrencies. The initial detection was made by Cyvers, an on-chain security alert provider, which identified multiple suspicious transactions and raised an alert. Shortly after the initial alert, Cyvers detected additional transactions valued at $1 million, bringing the total losses to $10 million.
Following the incident, Prisma Finance announced that its engineering team would take immediate action to pause the protocol and conduct a thorough investigation. This highlights the rigor with which the team addresses security and protects user funds.
🚨ALERT🚨Hey, @PrismaFi , you should better contact us! Check your TroveManager contract!#CyversAlert pic.twitter.com/0l18LtXDzg
— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) March 28, 2024
Prisma is known for being a protocol for decentralized liquid staking tokenization, and according to DefiLlama, it has over $222 million in total value locked (TVL). However, this incident has raised questions about its integrity, highlighting current risks in the DeFi sector in terms of cybersecurity.
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
Other Scammers Take Advantage of the Incident at Prisma Finance
In addition to the initial loss of $10 million, the attacker began exchanging the stolen funds for Ether, increasing the amount to $11.6 million. PeckShield, another on-chain security firm, warned that the attack was still ongoing, with the total amount of stolen funds continuing to increase. It has become more than necessary for vault owners to exercise thorough vigilance and to be alert to suspicious movements in their accounts.
Furthermore, the presence of scammers attempting to capitalize on the incident has been observed. A fake Prisma Finance account was identified attempting to direct users to a suspicious link. This underscores the importance of verifying the authenticity of information sources and remaining vigilant against potential fraud attempts.
The incident at Prisma Finance once again demonstrates the ongoing challenges facing the crypto industry in terms of security and fund protection. It remains to be seen how the protocol will progress and what measures will be taken to prevent similar episodes and compensate users if necessary.
