Prisma Finance hacked for $11 million

Prisma Finance hacked for $11 million

The DeFi protocol of Prisma Finance has become a victim of a hacker attack. The amount of damage is currently estimated at $11 million. The Prisma Finance team has acknowledged the hacking. The protocol was immediately suspended in order to conduct a thorough investigation of the incident.

The attack scheme looked like this: the attackers first conducted operations through the FixedFloat crypto exchange, and then deployed a malicious contract. Cybersecurity experts managed to detect it two minutes before the hackers made the first transaction and launched the hacking process. This whole mechanism was described by Cyvers analysts.

According to Cyvers, as a result of six transfers, a total of 1,965.39 wrapped Ethereum hosted on staking (wstETH) were stolen. After that, they converted the loot into Ethereum (ETH).

At the moment, the total damage is estimated at $11 million. This figure may still grow as the investigation progresses.

"Now it [the damage] exceeds $11 million. It can reach $20 million, since there are still funds in the contract. We have sent a message to Prisma Finance asking it to suspend the operation of the affected contract," security researchers from Cyvers told BeInCrypto.

At the time of writing, the DeFi protocol team has suspended all operations and is investigating the hack. The community is waiting for the Prisma team to provide new details on this incident.


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