In a concerning turn of events for the decentralized finance (DeFi) community, Prisma Finance, a notable DeFi protocol, has fallen victim to a sophisticated hacking attack. Blockchain security and analytics firm PeckShield was the first to flag the suspicious activity, revealing that hackers had managed to steal 3,257.69 Ethereum (ETH), equating to a staggering $11.6 million.

The initial theft saw the perpetrators siphon off $8.1 million worth of assets from the platform, which they later distributed across three separate wallets.

In response to the incident, the Prisma Finance team swiftly acknowledged the security breach, emphasizing their commitment to safeguarding users' assets. In a statement, they said, "Following the exploit affecting a number of users' individual vaults, Prisma Protocol has been paused by the emergency multisig and remaining funds are safe."

They reassured users that the stablecoins mkUSD and ULTRA were overcollateralized and thus not at risk, while also urging users to revoke all connections to the platform to prevent further losses.

The team behind Prisma Finance is now conducting a thorough investigation into the exploit and is exploring options to retrieve the stolen funds. With the platform temporarily paused, they've also issued warnings about potential phishing scams, advising users to only trust information from official communication channels.

"During the next hours, be careful with phishing links of all sort. Trust only official communication channels please."

This incident serves as a stark reminder of the vulnerabilities inherent in digital finance platforms, especially those in the burgeoning DeFi sector.

As Prisma Finance works to resolve this situation, the broader DeFi community will likely seek to bolster security measures to prevent similar breaches in the future.