#Ethereum #PrismaFinance #CryptoHack #mkUSD #FlashLoanAttack #BlockchainSecurity #Cryptocurrency #DeFi
Prisma Finance, a liquid restaking platform linked with Ethereum, recently declared that their vaults fell victim to a cyber-attack, resulting in an undisclosed amount of lost funds. This event has inevitably stirred the crypto community, leading to a rapid response from the platform. In an effort to control damage and secure remaining assets, Prisma Finance quickly paused its protocol. This move was supplemented by the reassurance provided to the holders of mkUSD and ULTRA stablecoins, highlighting that these assets are overcollateralized and thus not in peril, according to the protocol’s emergency multisig mechanism.
The repercussions of this exploit were immediately felt across the board, as financial metrics began to shift unfavorably for Prisma Finance. The mkUSD stablecoin saw a deviation from its $1 peg, dropping to $0.98968. The native token of the project, PRISMA, experienced a notable decline, dropping over 25% to a low of $0.24, before making a slight recovery. This situation was compounded by a substantial 40% plummet in the total value of assets locked in the platform, resulting in a decrease from $236 million to $143 million, casting a shadow over the project’s financial stability and investor confidence.
The attack, identified as a flash loan exploit by Beosin, a blockchain security firm, led to the theft of $11.6 million in digital assets. This significant financial blow comes in the wake of varied responses and reporting on the incident, including an initial loss report of $9 million by Cyvers Alert. The slow response from Prisma Finance in pausing its contract allegedly allowed the attacker to funnel an additional $1 million. As phishing attempts multiplied in the aftermath, Prisma Finance has issued warnings to its users to exercise caution and only trust official communications. This incident opens up significant discussions around the security of DeFi platforms, the implications of flash loan hacks, and the measures that need to be in place to prevent future exploits.
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