The hacker behind the $11.6 million theft from Prisma Finance’s decentralized finance (DeFi) protocol has claimed that the exploit was a “whitehat rescue.” This term refers to the actions of a hacker who uses their skills to identify security vulnerabilities in software code. The attacker reached out via on-chain messages, expressing a desire to return the funds and asking for guidance on how to do so. Despite this seemingly noble intention, the attacker swiftly exchanged the stolen funds for Ether (ETH) and even transferred some of it to a cryptocurrency mixer associated with illicit activities.
In response to the hack, Prisma Finance made the decision to suspend its DeFi protocol and launch an investigation into the root cause of the attack. This incident had a significant impact on the platform, causing the total value locked in their protocol to plummet from $220 million to $107 million, as reported by DeFiLlama. The breach at Prisma Finance is just one of many in the crypto space, with over $200 million lost to hacks and scams in the first two months of 2024 across 32 separate incidents, according to data from Immunefi, a web3 security firm.
Trends in Crypto Security
The statistics surrounding crypto security breaches are alarming. In 2023 alone, a total of $1.8 billion was lost to hacks and scams, with a notable 17% attributed to the North Korean Lazarus Group. The majority of these losses were a result of hacks rather than fraud schemes like rug pulls. Decentralized protocols bore the brunt of the damage, accounting for $1.3 billion in losses, compared to $409 million lost in centralized finance (CeFi) crypto protocols.
The aftermath of the hack saw the Prisma Governance Token (PRISMA) experience a 30% drop in value, falling to $0.244. However, the token has since made a slight recovery, reaching $0.28. Despite this rebound, the token’s value is still down by 35% over the past week, showcasing the lasting impact of the security breach on investor confidence.
Overall, the Prisma Finance hack serves as a stark reminder of the ever-present risks in the crypto space and the importance of robust security measures to protect user funds and maintain investor trust.
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