Prisma DeFi Protocol Faces $11 Million Exploit

Prisma Finance, a liquid staking platform, has reported a “possible exploit” with potential losses estimated at $11.6 million.

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

The team has urged users to revoke all wallet permissions to prevent losses.

Initially, unauthorized fund withdrawals were noticed by Cyvers service experts, who estimated the damage at $9 million. According to them, the attack “was funded through the FixedFloat exchange.”

PeckShield also pointed to suspicious transactions involving mkUSD tokens and wrapped ether. Experts calculated that Prisma Finance’s losses have already reached ~3257.7 ETH, valued at approximately $11.6 million.

#PeckShieldAlert The attack is ongoing, with the total loss now increased to ~3,257.7 $ETH (worth ~$11.6 million)
To vault owners, please follow up on notifications from the official source and be cautious about scams pic.twitter.com/5HYGYCROIP

— PeckShieldAlert (@PeckShieldAlert) March 28, 2024

Analysts noted attempts by scammers to use phishing through compensation offers and urged DeFi protocol clients to exercise caution.

Journalist Colin Wu highlighted that in early February, Justin Sun’s team withdrew ~53,800 wstETH (~$148 million) and 40.37 million mkUSD from Prisma.

On February 7th and 8th, Justin Sun’s team (0x9F…19Fe) withdrew 53.8k wstETH (US$148 million) and 40.37 million MKUSD from Prisma Finance, which was attacked today. There are currently 104,485.7647 stETH staked in Eigen Layer, worth about $374 million, and 58,270.3477 stETH…

— Wu Blockchain (@WuBlockchain) March 28, 2024

Back in February, FixedFloat was hacked, resulting in losses of at least $26 million.

In total, the crypto industry lost approximately $67 million to fraud and hacking in February, according to Immunefi.