Prisma Finance Battles "$11.6M Hack" Aftermath; Hacker Demands Public Apology
Summary:
Prisma Finance, a decentralized finance company, discusses the ongoing process of user funds recovery from a damaging $11.6 million exploit, executed by a self-proclaimed "white hat" hacker. The hacker demands a public apology and team identity reveal from Prisma, retaining the stolen funds until such criteria are met. Prisma focuses on reactivating the protocol, safeguarding users' wallets, and recovering the siphoned funds. The company's total protocol value, pre-exploit, was approximately $220 million, but post-exploit stands at just $87 million.
DeFi (Decentralized Finance) company, Prisma Finance, has indicated that there's still about $540,000 from users' accounts left to withdraw from the smart contract which was responsible for a financial exploit of $11.6 million last week. On the other hand, the alleged "white hat" hacker, who claims responsibility for the exploit, states they will withhold the restitution of assets until Prisma Finance apologizes publicly and discloses the identity of their team members online. On April 1, "Frank", a major contributor, announced on a "path forward" that the fund recovery process would continue, but the immediate concern is to reactivate the protocol while ensuring the safety of all users' funds and wallets. The preceding week saw the protocol suffer a mammoth exploit, later discovered to be due to two MigrateTroveZap contracts. 14 remaining accounts have yet to disconnect from the compromised smart contract, of these, five seem to be "at risk" with open loans amounting to above $500,000. Prisma operates as a decentralized lending protocol using "troves" (Ethereum addresses) where users can avail and manage loans. As part of its "path forward", Prisma aims to accumulate additional reserves while attempting to recover the pilfered funds. A recent proposal suggested restricting liquidity from POL and staked vePRISMA revenue. In an on-chain message dated March 30, the alleged hacker demanded that Prisma organize an online gathering where the complete team would disclose their identities, admit their flaws publically, and present a plan for future security enhancements. Prisma has responded stating that the exploiter is yet to show good faith by returning any of the funds. Since the incident, security firms Cyvers and Peckshield noted that the hacker initiated the process of converting the stolen funds to Ether, transferring about 200 Ether to the OFAC-sanctioned cryptocurrency blender, Tornado Cash. Prior to this exploit, Prisma Finance's protocol had locked in about $220 million in total value, a number which has drastically tumbled to $87 million, as per the DefiLlama data.
Published At
4/1/2024 4:46:46 AM
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