DeltaPrime Hack Drains $6 Million on Arbitrum Network

The post DeltaPrime Hack Drains $6 Million on Arbitrum Network appeared first on Coinpedia Fintech News

DeltaPrime DeFi, which operates on the Arbitrum platform, suffered a significant security breach, resulting in the loss of $5.98 million. The attack took place at 6:14 AM CET and was first reported by Cyvers alerts.

ALERTOur system has detected multiple suspicious transactions involving @DeltaPrimeDefi on $ARB chain! (Still ongoing)

It seems that admin has lost the private key. Suspicious address still draining the pools! Affected pools so far are the #DPUSDC, #DPARB, #DPBTCb !… pic.twitter.com/8sXanAaCwe

— Cyvers Alerts (@CyversAlerts) September 16, 2024

Everyone, understandably, is in shock. Here’s all you need to know.

Exploiting the Private Key

The hacker managed to access the platform by obtaining the admin’s private key. With this key, they drained liquidity pools like DPUSDC, DPARB, DPWETH, and DPBTCb. They executed a transaction that upgraded the proxy contract, giving them control of the platform’s funds. Initially, the loss was estimated at $4.5 million but later increased to almost $6 million.

The attacker quickly exchanged the stolen USDC for ETH, aiming to avoid USDC being frozen. To cover their tracks, they transferred 1,200 ETH (around $2.8 million) to another address.

ALERT@DeltaPrimeDefi attacker has moved 1.2K $ETH $2.8M to a new address hours agohttps://t.co/UB56eYhnLu

Want to keep your company off our alerts radar? Learn how to secure your assets: Book a Demo https://t.co/uUbFkFTp4h#CyversAlert https://t.co/yOmNZJyp5l

— Cyvers Alerts (@CyversAlerts) September 16, 2024

DeltaPrime Blue VS DeltaPrime Red

Thankfully, the above attack does not affect DeltaPrime Red, which runs on the Avalanche blockchain. In an official announcement, the team mentioned that DeltaPrime Red is protected by multisigs and cold wallets meaning that the hacking was done on DeltaPrime Blue in Arbitrum only as the rest of the funds were not compromised.

Recovery and Compensation Plans

DeltaPrime is now working on recovering the stolen funds. The team is also considering using an insurance pool to compensate affected users. They are testing various strategies to minimize the damage and are focusing on improving security to prevent future breaches.

This incident highlights the critical importance of protecting private keys in DeFi. Experts have noted that using Web3 security tools might have flagged the proxy upgrade and prevented the attack, serving as a reminder of the need for stronger security measures.

Also Check Out: Crypto Hack Weekly Report: Indodax, Caterpillar Coin, and Apple Targeted in Major Scams

Has this incident shaken your trust in DeFi? Share your perspective.