Crypto Crisis: Prisma Finance Hack Drains 11 Million Dollars from DeFi Platform

Crypto News- In a startling turn of events, Prisma Finance, a prominent player in the DeFi space, was recently targeted by cybercriminals, resulting in a significant loss of assets. According to reports from Cyvers, a respected cybersecurity firm specializing in Web3 protocols, the attackers orchestrated a series of transactions that saw the pilfering of 1,965.39 wrapped staked Ethereum (wstETH). This sizable haul was swiftly converted to Ethereum (ETH), indicating a meticulously planned assault on the platform’s vulnerabilities.

Crypto Crisis: Prisma Finance Hack Drains 11 Million Dollars from DeFi Platform

Cyvers analysts provided insight into the attack’s intricacies, revealing that the perpetrators first capitalized on FixedFloat before deploying a malicious contract. Remarkably, Cyvers managed to identify this nefarious contract a mere two minutes before the initial exploit transaction, underscoring the rapidity with which the attack unfolded.

The financial toll of this breach is staggering, with losses currently estimated at $11 million spread across six discrete transactions. However, the full extent of the damage remains uncertain, with fears that the total sum could soar even higher.

“We’ve observed more than $11 million in losses thus far, but the potential for further escalation looms large. With funds still lingering within the compromised contract, the figure could potentially skyrocket to $20 million,” disclosed security researchers at Cyvers in a candid exchange with BeInCrypto.

Prisma Finance’s Rapid Response: Halting Operations and Investigating Breach

In response to the breach, Prisma Finance has taken swift action, suspending its operations and launching a thorough investigation to gauge the severity of the incident. As the DeFi community anxiously awaits updates and a detailed post-mortem from Prisma Finance, this breach serves as a stark reminder of the ever-present dangers inherent in digital financial ecosystems. The imperative for robust security protocols and proactive threat detection mechanisms has never been more pronounced.