2024-03-30
The recent hacking incident involving the Prisma Finance protocol has once again brought attention to the vulnerabilities and risks associated with decentralized finance (DeFi) platforms.
According to reports by PeckShield, a security firm, the hackers behind the exploit managed to transfer 1,840 Ethereum (ETH) worth approximately $6.5 million to the Tornado Cash mixer.
PeckShieldAlert Tweet on Hackers Transfers on (X)
The movement of funds was tracked by analysts, who discovered that the attacker had also reached out to the Prisma Finance developers.
In their message, the hacker expressed concerns about the security of smart contracts and whether the project had undergone auditing before deployment. The attacker emphasized the need for proper project audits but did not mention any intentions of returning the stolen funds.
The security breach occurred on March 28, resulting in significant losses for Prisma Finance. While Cyber specialists estimated the losses at around $9 million, PeckShield provided additional data indicating losses of $11.6 million.
PeckShieldAert Hackers Message to Prisma on (X)
The stolen assets, including mkUSD and wrapped stETH, were transferred to crypto mixer Tornado Cash in multiple transactions.
Crypto mixers like Tornado Cash are often utilized by cybercriminals to obfuscate the origins of stolen crypto tokens.
In this case, $2.7 million in ether was routed to Tornado Cash in one batch, followed by $3.8 million in another.
Prisma Finance acknowledged the exploit and announced the pause of the Prisma Protocol to protect the remaining funds.
The protocol assured users that its mkUSD stablecoin was overcollateralized and not in danger. It also pledged to share a post-mortem on the exploit and make efforts to recover the stolen funds.
The incident at Prisma Finance adds to the growing list of security breaches and hacks within the crypto industry.
According to a report by Immunefi, the first quarter of 2024 witnessed losses of $336 million from hacks and scams.
These incidents highlight the urgent need for stronger security measures, thorough auditing processes, and increased awareness of potential risks in the rapidly evolving DeFi landscape.
As investigations into the Prisma Finance hack continue, the crypto community and security experts remain vigilant in their efforts to prevent and mitigate such incidents, ultimately striving to build a more secure and trustworthy DeFi ecosystem.
