Prisma Finance faces $11.6 million security breach - CryptoCrazeNews

Prisma Finance faces $11.6 million security breach

Prisma Finance faces $11.6 million security breach

Prisma Finance faces $11.6 million security breach

On March 28, 2024, a crypto-security firm, CertiK Alert, made a post on X (previously Twitter) stating that the wallet address 0x7E39 EOA (External Owned Account) was found engaging in suspicious activity on Prisma Finance. According to the data shared on X, they initially executed several exploit transactions on Prisma Finance, resulting in the transfer of over 1965.39 wstETH, worth around $8.1 million, which was then converted into Ethereum’s ETH. 

As per the recent data from CertiK Alert, the protocol now appears to be paused, and the exact losses stand at 3,257 ETH, worth around $11.6 million.

Prisma Finance’s recent hack

However, following this report by CertiK, Prisma Finance also shared a post on X, warning users and stating that they had paused the protocol for investigation. Additionally, due to the recent exploit, Prisma requested all its users to revoke all connections to prevent further loss of funds.

Prisma Finance also stated, “All users who connected their wallets to the platform are at risk of future fund loss,” and added a caution against clicking on any links. Furthermore, they advised being careful with phishing links of all sorts and emphasized trusting only official communication channels like Discord.

Prisma Finance is a decentralized liquid staking platform that allows users to create a stablecoin (mkUSD) using their Ethereum staking tokens as collateral. It rewards users with trading fees and additional tokens, all controlled by a decentralized organization (DAO). It was considered a safe and flexible way to maximize Ethereum holdings.

PRISMA price after $11.6 million hack

However, according to Defillama, Prisma Finance has $221.94 million of Total Value Locked (TVL). Following this exploitation, Prisma Finance’s PRISMA token value dropped massively by 32% from $0.34 to $0.25. Additionally, the trading volume has also increased by 36%, indicating that traders as well as investors might be exiting their positions.

Before this incident, the overall cryptocurrency market was struggling to gain momentum. Following this incident, there is a possibility that it may affect the overall crypto market. Top cryptocurrencies like Bitcoin, Ethereum, Solana, and others are also experiencing a downward momentum.

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