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Restaking protocol Prisma Finance hit with $12 million exploit

Mar. 28, 2024

The protocol is currently paused, and Prisma's team urges users to disable delegate approval

Restaking protocol Prisma Finance hit with $12 million exploit

Restaking protocol Prisma Finance was exploited on Mar. 28 for almost $12 million of Wrapped Staked Ether (wstETH), a CertiK report reveals. The exploiter used multiple flash loan transactions to take 2,821.3 wstETH, which they swapped for 3,257.69 Ether (ETH) valued at around $11.6 million at the time of writing.

CertiK points out that the attacker’s wallet was funded via a fixed float transaction tracing back to the Arbitrum address 0x63eC0c6A754cA5e3cd0D9f482C00515E3e08eD68. This wallet had received funds from 0xD71F1590aD9008056D5d079835bdf5044C0B81Fa.

Prisma’s team announced on X that the protocol has been paused by its emergency multi-signature wallet, and the remaining funds are safe. The post also stated that mkUSD and ULTRA stablecoins are overcollateralized and are not at risk.

Moreover, the protocol urges vault owners to disable delegate approval to its smart contracts. Prisma’s total value locked fell by 46% in the last 24 hours, data from DefiLlama shows.

According to Prisma’s team, the next steps are to publish a post-mortem on the incident and try to retrieve the funds stolen.

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