Prisma Finance, a DeFi platform, is facing a $11.6 million exploit fallout, with $540,000 still at risk as the “white hat” hacker seeks a public apology and team identify in exchange for fund return.
Prisma’s core contributor, “Frank,” described efforts to recover monies while prioritizing user safety. The exploit was caused by defective MigrateTroveZap contracts, which affected 14 accounts, five of which are still “at risk” with open positions totaling more than $500,000.
Prisma recommended lowering liquidity and staked revenue to increase reserves, emphasizing the separation of the exploited contract from the core protocol. Despite Prisma’s attempts to recover, the hacker insists on an internet conference to apologize and accept responsibility.
The argument erupted when Prisma questioned the hacker’s veracity, citing fund transfers to Ethereum (ETH) via Tornado Cash. According to DefiLlama data, Prisma’s total locked value plummeted from $220 million to $86.7 million following the hack.
This event highlights the security problems that DeFi faces, as well as the significance of thorough smart contract audits and quick response procedures. Despite ongoing recovery efforts, Prisma intends to stabilize its platform and regain user trust.
