On March 28, 2024, CertiK Alert, a crypto-security firm, reported on X (previously Twitter) that the wallet address 0x7E39 EOA was involved in suspicious activity on Prisma Finance. The data showed that exploit transactions on Prisma Finance resulted in the transfer of over 1965.39 wstETH, valued at around $8.1 million, which was then converted into Ethereum's ETH.

The recent data from CertiK Alert reveals that the protocol is currently paused, with losses totaling 3,257 ETH, amounting to approximately $11.6 million.

Prisma Finance responded to CertiK's report by informing users that the protocol had been paused for investigation. They urged users to disconnect all connections to prevent further fund losses and warned against clicking on any links. It was emphasized to only trust official communication channels like Discord and to be cautious of phishing links.

Prisma Finance, a decentralized liquid staking platform enabling users to generate a stablecoin (mkUSD) using Ethereum staking tokens as collateral, rewards users with trading fees and additional tokens through a decentralized organization (DAO). This platform was previously recognized as a safe and flexible means to maximize Ethereum holdings.

Following the $11.6 million hack, Defillama reported that Prisma Finance's Total Value Locked (TVL) was $221.94 million. The PRISMA token's value plummeted by 32% from $0.34 to $0.25, and the trading volume surged by 36%, potentially indicating traders and investors liquidating their positions.

Prior to this event, the overall cryptocurrency market was struggling to gain traction. However, following the breach, there may be a ripple effect impacting the broader crypto market, with major cryptocurrencies such as Bitcoin, Ethereum, Solana, and others experiencing negative price movements.