DeltaPrime, a decentralized crypto brokerage backed by industry giants like Avalanche and GSR Markets, has reportedly fallen victim to a new exploit, resulting in a $4.7 million loss. This marks the second major hack targeting the platform in just two months.
Hi @DeltaPrimeDefi, you may want to take a look pic.twitter.com/uUn7fnRCLu
— PeckShield Inc. (@peckshield) November 11, 2024
Reports surfaced Monday from blockchain analysts indicating that DeltaPrime, a prominent protocol on the Avalanche and Arbitrum networks, had suffered a significant breach. Analysts from CertiK, a blockchain security firm, attributed the attack to a vulnerability in DeltaPrime’s periphery adaptor contract, which may have allowed attackers to siphon funds from multiple pools on Arbitrum. The stolen assets are reportedly being held in a wallet identified as 0x56…634c.
DeltaPrime was just exploited on Avalanche and Arbitrum for a total of (initial estimate) $4.75mm.
With the protocol being paused on both chains, the risk is contained. We will provide updates asap.
— DeltaPrime (@DeltaPrimeDefi) November 11, 2024
Second DeltaPrime Hack Raises Fresh Security Concerns
DeltaPrime confirmed to Beacon contagion bot owner Banteg that the breach also targeted pools on the Avalanche and Arbitrum networks, resulting in a loss of $4.75 million. The incident is the second security failure to rock the platform in recent months. A prior $6 million DeltaPrime breach occurred in September, in which hackers gained control of one of the project’s contracts by exploiting weak private key security.
The hack series has brought about watch reparations for the platform’s security practices and previous affiliations with shady individuals. Previously, blockchain investigator ZachXBT pointed out that DeltaPrime used North Korean IT workers. However, the protocol has since removed those employees. And while North Korean involvement in the latest attack hasn’t been confirmed, questions remain about the role played by the platform’s history.
Of course, in January 2023, DeltaPrime was launched on the Avalanche network and instantly started making good progress, accumulating nearly $63 million in total value locked (TVL) and over $20 million in liquidity through the protocol’s official site. It has built passing with Avalanche, GSR Capital, Moonhill Capital, Uplift, and several other huge traders.
DeltaPrime has not yet spoken about the next steps or what it will compensate its users once it is aware of the incident. Still, the incident reminds us of the inherent vulnerabilities in decentralized finance platforms even from big players. It is also a reminder of the DeFi risks and the risks the attack exemplifies in an ecosystem expanding at breakneck speed and a dynamic threat environment.
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