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Know Your Breach: Prisma Finance
Apr 19, 2024 7:32:09 AM
The Target: Prisma Finance, a popular decentralized finance (DeFi) platform.
The Take: The Munchables blockchain-based game said it was attacked, and several security firms said about $62 million worth of cryptocurrency was stolen from the game. That incident was followed by another when a hacker stole about $11.6 million from Prisma Finance.
The Vector: The theft occurred as a result of a flash loan attack. Flash loan attacks involve hackers borrowing funds that do not require collateral, buying a significant amount of a cryptocurrency to artificially raise its price and then offloading the coins. The loan is paid back and the borrower keeps any profit. The report said that once the first person had exploited the vulnerability in the platform, two others copied the same method.
This breach is a stark reminder of how strong authentication controls are in an overall robust cybersecurity posture, and that good password hygiene plays a pivotal role in protection.
