The decentralized finance protocol Prisma Finance fell victim to a hack attack on March 28, with losses nearing $10 million. Blockchain security alert provider Cyvers was the first to detect the anomaly according to a March 28 post. Shortly after the initial alert, Cyvers identified an additional fraudulent transaction of $1 million, bringing the total funds compromised to approximately $10 million.
Prisma Finance Hit by Hack Attack
Prisma Finance stated in a March 28 post that its core engineers and contributors would pause and investigate the protocol. Prisma is a decentralized liquid staking token protocol with a total value locked (TVL) exceeding $222 million, according to blockchain data analysis platform DefiLlama.
According to Cyvers, following the initial hack, the attacker began converting the stolen funds to Ethereum. Blockchain security firm PeckShield stated that the attack is still ongoing, and shared the following on social media platform X on March 28:
“The attack continues and the total loss has now risen to 3,257.7 Ethereum, valued at $11.6 million. Investors should follow official sources for updates and remain vigilant against scams.”
As seen in the image above from PeckShield, other scammers are also trying to exploit this vulnerability. Beneath the official Prisma Finance announcement, a fake Prisma Finance account with a gold badge is attempting to direct users to a suspicious link. Closer inspection reveals that the fake account has no connection to Prisma Finance.
Hack Attacks in the Crypto Space
Hack attacks continue to erode the legitimacy of the crypto sector. According to blockchain security firm Immunefi, until February 29, 2024, over $200 million was lost in 32 separate incidents of crypto hack attacks and rug-pull events.
The loss of over $200 million represents a 15.4% increase compared to January and February 2023, when $173 million in crypto assets were stolen. A report published by Immunefi on December 28 states that in 2023, a total of $1.8 billion was lost to crypto hackers and scammers, with 17% attributed to the North Korean Lazarus Group.
