Prisma Finance Suffers $10 Million Crypto Heist

The decentralized finance (DeFi) platform, Prisma Finance, fell victim to a cyber attack resulting in the loss of approximately $10 million in cryptocurrencies on March 28. Cyvers, a provider of on-chain security alerts, was the first to spot the irregularity, announcing via a X post on the same day:

"Our monitoring system identified several dubious transactions linked to @PrismaFi, which are still in progress. The initial losses are estimated at about $9M. The attack was orchestrated using funds from @FixedFloat. Remarkably, our system flagged the malicious contract two minutes before the execution of the hack transactions!"

Following this initial warning, Cyvers reported an additional $1 million in illicit transactions, pushing the total stolen funds to nearly $10 million. In response to the breach, Prisma Finance announced that it would temporarily suspend its protocol for a thorough investigation by its primary engineers and contributors, as mentioned in a March 28 post on X.

Prisma operates as a decentralized protocol for liquid staking tokens and has amassed over $222 million in total value locked (TVL), as per data from #DefiLlama .