Prisma Finance, an Ethereum liquid restaking platform, reported earlier today that its vaults were exploited for an undisclosed sum. The protocol announced that Prisma Protocol has been paused by the emergency multisig, ensuring the safety of remaining funds, while confirming that stablecoins mkUSD and ULTRA are overcollateralized and not at risk.

However, the mkUSD stablecoin has deviated from its $1 peg, currently trading at $0.98968. The project's native PRISMA token experienced a decline of over 25%, dropping to as low as $0.24 before slightly rebounding to $0.3024.

The exploit led to a 40% decrease in the total value of assets locked on the protocol, falling to $143 million from $236 million recorded on March 27, according to DeFillama data. Beosin, a blockchain security firm, reported that the platform suffered a flash loan attack resulting in the theft of $11.6 million in digital assets. Initial estimates by Cyvers Alert indicated losses of $9 million, with an additional $1 million siphoned due to Prisma Finance's delay in pausing its contract.

Prisma has halted its protocol for investigation and advised vault owners to disable delegate approval on both LST and LRTs as a precaution. Following the disclosure, there has been a surge in phishing attempts, with malicious actors impersonating Prisma to capitalize on the situation. Prisma warned users to only trust official communication channels and advised caution with phishing links during this time.