DeltaPrime, an on-chain brokerage platform, has fallen victim to a significant security breach early Monday, resulting in the loss of over $6 million in various tokens.
Attack Details
According to security researchers, the exploit was caused by a private key leak that allowed the attacker to gain control over the platform’s administrative functions. The exploit specifically impacted DeltaPrime’s deployment on the Arbitrum blockchain. Users on Arbitrum are unable to withdraw funds due to the platform’s borrowing and lending mechanisms, which rely on proxies to interact with contracts and users. Chaofan Shou, founder of security firm Fuzzland, explained that the hacker managed to gain control over the admin account of the proxies, redirecting them to a malicious contract, effectively gaining control of the protocol’s key functionalities.
DeltaPrime Responds
DeltaPrime’s team is investigating the issue. Although they have yet to formally confirm the exploit on their Discord channel, they acknowledged they were working on resolving the situation. Meanwhile, DeltaPrime’s native PRIME token dropped 5% in the past 24 hours. Security firm Cyvers confirmed the exploit, noting multiple suspicious transactions involving DeltaPrime’s on-chain pools. The compromised pools included USDC stablecoins, Arbitrum’s native token ARB, and bitcoin (BTC).
Rising Security Exploits
The DeltaPrime breach adds to the growing list of recent crypto attacks. Last week, renowned Indonesian cryptocurrency exchange Indodax suffered a security breach, resulting in the loss of $15.7 million. Furthermore, in July, India’s leading crypto exchange WazirX also reported a major security exploit, losing around $235 million worth of funds.
The attack on DeltaPrime highlights the vulnerability of decentralized finance platforms to hacking and the urgent need to enhance security measures.
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