A self-proclaimed white hat hacker attacked Prisma Finance, causing a significant decrease in the total value locked in the protocol. In the latest development, the hacker in question asked the Prisma Finance team to hold an online press conference where all team members would show their KYC credentials and apologize.
However, data shows that the hacker used Tornado Cash to obfuscate more than 3,000 ETH, casting doubt on his white hat claims and suggesting malicious intent. As a result of the attack, the total value locked in the protocol dropped from approximately $220 million to $115 million.
In response to the attack, Prisma Protocol was placed on emergency multisig pause as a precaution to ensure the safety of remaining funds. Despite the attack, Prisma Finance shared with users that stablecoins such as mkUSD and ULTRA remained over-collateralized and safe.
The person behind the attack claimed that the hack in question was a “white hat recovery” operation and expressed his intention to return the funds.
*This is not investment advice.
