Prisma price tanks 25% after nearly $9 million exploit

Prisma Finance suffers $9 million exploit on Thursday, exploiter currently holds stolen funds in Ether wallet.
The exploit is yet to end, project’s vault is being drained on Friday.
PRISMA price took 25% losses on the day.

Prisma Finance (PRISMA) is being exploited, and the attacker has so far pulled $9 million in Ethereum from the borrowing protocol. Prisma asked vault owners to take the necessary steps to protect funds from the ongoing attack in an official tweet on X.

PRISMA token suffered a steep decline, wiping out 25% of its value within hours on Thursday.

PRISMA Finance exploit catalyzes steep decline in token price

The decentralized borrowing protocol’s team announced that Prisma is under attack and there is an investigation to identify the cause. The team will release a post-mortem analysis and further updates for PRISMA holders, according to their official tweets on X.

To vault owners, please disable delegate approval:

LST:https://t.co/SJCjPCxv56

_delegate: 0xcC7218100da61441905e0c327749972e3CBee9EE
_isApproved: false

LRT:https://t.co/PyY6bhdJAi

_delegate: 0xC3eAf094e2586965244aB6534f6Dc69c6C16b5D5
_isApproved: false
— Prisma Finance (@PrismaFi) March 28, 2024

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 protocol’s core engineering contributors have paused the chain to investigate.

The borrowing protocol warned users against phishing links and asked PRISMA holders to pay heed to official communication only.

During the next hours, be careful with phishing links of all sort.

Trust only official communication channel pleasehttps://t.co/pTLFdoLLSr
— Prisma Finance (@PrismaFi) March 28, 2024

Cyvers, a Web3 security platform, first detected suspicious transactions on the blockchain and estimated the total loss to $9 million. Cyvers’ investigation reveals that the attacker used crypto exchange FixedFloat to fund the attack.

PeckShield, another leading cyber security firm, confirmed the attack and noted that Prisma mkUSD and wrapped, staked Ether tokens have been lost to the exploit.

Web3 security platform Cyvers first detected the suspicious transactions, estimating a total loss of around $9 million so far, claiming the attacker funded via the crypto exchange FixedFloat.

UPDATEOur system has detected multiple suspicious transactions with @PrismaFi and still ongoing!

Total loss so far is around $9M. Attacker has funded by @FixedFloat!

Our system has detected the malicious contract 2 min earlier than hack transactions!

Our system would… https://t.co/9myoV8DL22 pic.twitter.com/SxT5yYZy7U
— Cyvers Alerts (@CyversAlerts) March 28, 2024

Blockchain security firm PeckShield also confirmed the attack, suggesting Prisma mkUSD and wrapped stETH are among the stolen assets.

Hi @PrismaFi, you may want to a look (w/ $8.1m) pic.twitter.com/VQ8tnv6dYW
— PeckShield Inc. (@peckshield) March 28, 2024

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