Prisma Finance (PRISMA) suffers $12M exploit; Protocol posed amid investigations
- Hackers exploited Prisma Finance on Thursday, escaping with assets worth nearly $12 million.
- Core engineers will temporarily suspend services amid the ongoing investigation.
- PRISMA price saw a sudden 20% drop following the development.
Fraudsters are exploiting the decentralized borrowing platform Prism Finance (Finance), so far pulling $11.6 million in Ethereum (ETH). T
he team advised users to remain vigilant as core engineering contributors pause the protocol amid investigations.
Prisma directed vault owners to suspend delegate approval to safeguard funds and promised more details for token holders after a post-mortem analysis.
Moreover, the borrowing network warned about phishing links and advised PRISMA investors to follow official communication only.
Also, blockchain security company PeckShield confirmed that the scammer siphoned wrapped stETH and Prisma mkUSD.
Meanwhile, web3 security firm Cyvers observed the suspicious activities first. It revealed that the fraudsters utilized FixedFloat crypto exchange to fund the hack.
PRISMA’s current price outlook
Copy link to sectionThe native token reacted to the developments with sudden price declines. It traded at $0.3086 at press time, down 20% on the 24-hour chart.
The altcoin will likely dip further as the downward sentiments linger. The latest update from the team stated,
“All users who connected their wallets to the platform are at risk of future fund loss.”
That could translate to continued bearishness in the upcoming sessions.
Prisma Protocol’s hacking incident reflects the increasing need for security in the nascent cryptocurrency market.
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