Prisma Finance: White Cyberattack Results in $11.6M Losses

In a recent cyber attack on the Protocol of liquid bets of Prisma Finance, the hacker responsible claimed that the attack was carried out as a preventative measure to identify vulnerabilities in the system.

Following the attack, which resulted in a loss of $11.6 million, the hacker reached out to Prisma Finance through an encrypted address to offer to return the funds and initiate discussions regarding the conditions of return. The incident was described as a form of “white hat” hacking, where hackers identify system vulnerabilities not for personal gain, but to prevent potential attacks.

The attack took place on March 28 and caused significant financial losses for Prisma Finance, leading to a decrease in confidence in the system. Analysts at PeckShield estimated the losses to be $11.6 million, with funds distributed to multiple addresses and partially converted into Ethereum cryptocurrency. In response, Prisma Finance suspended the operations of its Defi Protocol to limit the damage and launched an investigation into the incident.

Prior to the attack, Prisma Finance had approximately $220 million in assets, but this value plummeted to less than $115 million following the attack.

Furthermore, the value of the PRISMA (PRISMA) governance token was impacted by the incident, experiencing a 30% decrease in value initially, but later partially recovering.

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