April 19, 2024
Latest Cryptocurrency News

Prisma Finance Exploited for $10 Million in DeFi Hack

On March 28, the decentralized financial system Prisma Finance fell prey to a massive exploit, resulting in the loss of nearly $10 million in cryptocurrency. Cyvers, an on-chain security alert provider, discovered suspicious transactions using PrismaFi and first reported the issue.

According to Cyvers, the attacker received funding from FixedFloat and swiftly executed fraudulent transactions totaling around $10 million. Despite efforts to contain the breach, Cyvers reported an additional $1 million in fraudulent transactions shortly after the initial alert, exacerbating the total loss.

Immediate Response and Ongoing Threat

Prisma Finance promptly announced the suspension of its protocol to conduct a thorough investigation. With over $222 million in total value locked (TVL), the protocol’s exploitation raises significant concerns within the DeFi community.

As security firms like PeckShield continue to monitor the situation, reports indicate that the attacker has already begun converting the stolen funds into Ether. Moreover, scammers are capitalizing on the chaos, attempting to lure users with fraudulent accounts impersonating Prisma Finance.

Rising Trend in Crypto Hacks

This incident adds to a concerning trend of crypto hacks, which have seen over $200 million lost across 32 individual incidents in 2024 alone, according to Immunefi. The surge in losses reflects a 15.4% increase compared to the same period in 2023, highlighting the persistent threat posed by hackers and scammers to the cryptocurrency industry’s integrity.

Image by vecstock on Freepik

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