The hacker who stole $11.6 million from Prisma Finance’s decentralized finance (DeFi) protocol has claimed that the exploit was a “whitehat rescue” in on-chain messages. This term refers to hackers who use their skills to find security vulnerabilities in software code. The attacker sent a message six hours after the hack, stating that the intention was to help the platform. The attacker also inquired about how to return the funds to the protocol, using a specific address linked to the attack.
Despite the claim of good intentions, blockchain security firm Cyvers reported that the attacker quickly swapped the stolen funds for Ether (ETH) after sending the message. Additionally, PeckShield detected a transfer of around 200 Ether to an OFAC-sanctioned cryptocurrency mixer known for obscuring transactions and funding sources.
In response to the exploit, Prisma Finance has paused its DeFi protocol to investigate the root cause of the attack. The total value locked on their platform dropped significantly from $220 million to $107 million. This incident highlights the vulnerability of DeFi protocols to hacks and the impact these breaches can have on users and the platform itself.
The hack on Prisma Finance adds to the growing list of crypto-related hacks and scams in recent years. According to Immunefi, over $200 million in crypto has already been lost to hacks and scams in the first two months of 2024 across 32 individual incidents. In 2023, the total loss from hacks and scams was $1.8 billion, with a significant portion linked to the North Korean Lazarus Group.
Following the news of the hack, the Prisma Governance Token (PRISMA) experienced a 30% drop to $0.244. However, it has since rebounded to $0.28, although still down 35% over the last week. This shows the impact that security breaches can have on the value of tokens associated with affected platforms.
Overall, the Prisma Finance hack raises questions about the security of DeFi protocols and the motivations behind such attacks. While the hacker claimed to have had good intentions, their actions tell a different story. The incident serves as a reminder of the importance of robust cybersecurity measures in the world of decentralized finance.