Prisma Finance’s Hacker Turns Out to be a White Hat, Suffering Losses of $11.6 Million
The decentralized finance (DeFi) industry has been dealt a major blow with the sophisticated hack of Prisma Finance, resulting in the loss of $9 million. The latest report indicates that the stolen amount has now reached $11.6 million.
One of the first to detect abnormal transactions related to the Prisma Finance attack was Cyvers, a leading Web3 cybersecurity company. They revealed that an attacker funded by FixedFloat had executed a series of transactions, resulting in the theft of 1,965.39 ETH, valued at approximately $9 million.
Update: Our system has identified multiple suspicious transactions involving @PrismaFi, which are still ongoing! The current total loss is around $9 million. The attacker has been funded by @FixedFloat! Our system detected the malicious contract two minutes prior to the hack transactions! Our system will…
PeckShield, another blockchain security firm, confirmed the attack and stated that the stolen funds now amounted to 3,257.69 ETH, worth $11.6 million. The PrismaFi exploiter then transferred the stolen funds to three different addresses and began laundering them through sanctioned Tornado Cash, exchanging stolen tokens for ETH.
Surprisingly, the hacker behind the $11.6 million malicious attack later claimed that it was a “whitehat rescue.” The hacker, using the address “0x2d4…7507a,” contacted Prisma Finance six hours after the incident, expressing their intention to return the stolen funds.
In response to the attack, Prisma Finance took immediate action. They halted the protocol and launched a thorough investigation. The team also requested the cancellation of all connections to prevent further fund leakage. They are actively communicating with their community to keep them informed about the current situation.
As a result of the hack, Prisma Finance has suffered significant damage, with the total value locked (TVL) in the protocol dropping from $220 million to $115 million. Additionally, the token value of Prisma Governance (PRISMA) experienced a 30% decrease before beginning to recover.
The Prisma Finance hack highlights the ongoing challenges faced by the DeFi sector, which must prioritize security for decentralized protocols. According to a report by Immunefi, scams and hacking incidents have cost crypto platforms $336.3 million between January and March of this year, with DeFi platforms being the primary targets.
While these numbers are concerning, there is some hope, as $73.9 million has been recovered from seven money laundering cases. However, this event emphasizes the importance of robust cybersecurity practices to ensure adequate security within the rapidly expanding cryptosphere.