2 months ago
34
DeltaPrime, a decentralized borrowing and investing platform, recently faced a devastating $6 million hack after an admin private key was leaked.
This breach affected DeltaPrime’s wallets on the Arbitrum blockchain, causing significant financial damage and raising concerns about the platform’s security.
The attack highlights the ongoing vulnerabilities within the DeFi space and has led to a sharp drop in the value of DeltaPrime’s native token, PRIME.
DeltaPrime users unable to withdraw funds
According to Cyvers, an on-chain security firm, the hack primarily targeted DeltaPrime’s Arbitrum version, with initial losses estimated at around $4.5 million.
However, the breach continued as suspicious activities were detected, with the total losses expected to surpass $6 million.
🚨ALERT🚨Our 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 !…
Fuzzland founder Chaofan Shou shared an alarming update on X, warning users to withdraw their funds immediately as all pools were drained.
Shou indicated that the hackers had gained access to all pools after the private key was compromised, leading to losses that quickly escalated to $7 million.
Delta Prime @DeltaPrimeDefi admin private key leaked. All pools are drained. $7M loss already. Withdraw ASAP! arbiscan.io/address/0xd550…
DeltaPrime, which operates on both the Arbitrum and Avalanche blockchains, faced issues with users being unable to withdraw funds on Arbitrum due to the platform’s borrowing and lending mechanisms.
In response to the hack, the DeltaPrime team took to Discord to inform users that they were investigating the issue.
However, they did not provide any confirmation about the exploit or disclose further details of the ongoing breach.
DeltaPrime hack: native token PRIME drops 6.5%
The incident has had an immediate impact on the platform’s native token, PRIME.
Following the news of the hack, PRIME saw a 6.5% drop, falling to $1 within 24 hours.
Source: CoinGecko
At the time of reporting, the token is trading just below $1, according to CoinGecko.
This sharp decline has added to the growing concerns surrounding the security of decentralized finance platforms like DeltaPrime.
Launched on the Avalanche network in 2023, DeltaPrime initially garnered attention for attracting over $63 million in total value locked (TVL).
The platform boasted of unlocking more than $20 million in liquidity and had support from key investors, including Avalanche, GSR Capital, Moonhill Capital, and Uplift.
Despite its early success, this latest breach severely tarnishes its reputation and raises questions about its long-term viability.
The hack comes just two months after DeltaPrime was targeted in another attack that resulted in $1 million in losses.
During that incident, the attacker exploited a misconfiguration to access 13 different Prime Accounts, repay loans, and withdraw collateral.
Although DeltaPrime had re-audited its code and compensated affected users, the current breach demonstrates that significant vulnerabilities remain.
DeltaPrime hack: possible North Korean link?
To complicate matters, some on-chain investigators, including sleuth ZachXBT, have raised concerns about a possible North Korean link to the hack.
Earlier this year, ZachXBT warned DeltaPrime about employing North Korean IT workers, who are known to infiltrate crypto firms and gain insider access.
Although DeltaPrime claimed to have removed the flagged individuals, the connection between North Korea and the hack remains unclear.
North Korean hackers have previously been linked to high-profile crypto attacks, including the $235 million WazirX breach and the $20 million Indodax exchange exploit.
As DeltaPrime deals with the fallout of this latest attack, it is evident that more robust security measures are needed across the decentralized finance space to prevent further breaches.
The post DeltaPrime suffers $6 million hack following admin key leak, PRIME token falls appeared first on Invezz
English (US) ·