Decentralized borrowing protocol DeltaPrime has suffered a multi-million dollar hack, with suspicions pointing to entities connected to North Korea.
Hack and Key Leak
DeltaPrime, backed by Avalanche and GSR Markets, was hit by a $4 million hack due to an admin private key leak. Fuzzland co-founder Chaofan Shou announced the incident on X. All protocol pools were drained, amounting to $7 million in losses. Users were advised to withdraw their funds immediately.
Suspicion and Investigation
The exact circumstances behind the key leak are unclear, but blockchain investigator ZachXBT noted that DeltaPrime previously employed North Korean IT workers. However, all flagged personnel had been removed, leaving questions about any connection between the hack and North Korea unresolved. Cyvers Alerts researchers reported that the hack targeted the version of the protocol on Arbitrum, and the hackers have already swapped the stolen USD Coin for Ethereum.
Consequences and Reaction
In addition to Arbitrum, DeltaPrime also has a protocol launched on the Avalanche network, though no reports have been made on whether that protocol is also vulnerable to attacks. Following the hack, DeltaPrime’s native token, PRIME, fell by 6% to $1. As of press time, the DeltaPrime team made no public statements on the matter. First launched on the Avalanche network in January 2023, DeltaPrime attracted over $63 million in total value locked and unlocked more than $20 million in liquidity.
DeltaPrime has faced significant financial losses due to the hack. Despite the security measures taken, the incident raises questions about the reliability of protocols and data protection.
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