In a fresh reminder of the vulnerabilities within the decentralized finance (DeFi) sector, another major hack has shaken the cryptocurrency world. Delta Prime, a prominent DeFi platform, recently fell victim to a cyberattack, resulting in the theft of nearly $6 million worth of digital assets. This incident highlights the increasing risks associated with altcoin investments.
Delta Prime Suffers a Major Hack
The attack was first brought to light on September 16 by on-chain security platform Cyvers, which reported the involvement of a suspicious address converting USDC into ETH. Initial reports estimated the theft at $4.5 million, with concerns that the amount could grow. Not long after, Chaofan Shou, co-founder of Fuzzland, confirmed that further malicious transactions pushed the total to nearly $6 million.
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
â Cyvers Alerts (@CyversAlerts) September 16, 2024
According to Meir Dolev, CTO of Cyvers, the hackers managed to gain control over Delta Primeâs administrative wallet. They then manipulated the platformâs proxy contracts, replacing them with malicious ones. This allowed the attackers to drain assets from pools on the Arbitrum chain, leading to significant losses for the platformâaround $5.9 million.
Larger Trend of Attacks
This is not an isolated incident in the crypto space. Just two months ago, a massive hack saw $230 million stolen from the Indian crypto exchange WazirX. This marked one of the largest crypto heists in 2024 and underscored the growing threat landscape for decentralized finance ecosystems. The rise in such breaches has security experts warning of more sophisticated and damaging attacks on the horizon.
In light of the Delta Prime breach, experts have sounded alarms about the increasing risks of even larger, more complex attacks. There is growing concern that notorious hacker groups, such as the North Korea-based Lazarus Group, may target U.S.-based Bitcoin ETF funds. Michael Pearl, Vice President of GTM Strategy at Cyvers, noted that ETF funds could become attractive targets due to their significant asset holdings. Pearl pointed out that the FBI recently issued warnings of potential threats against ETFs, stating that these funds present a lucrative reward for cybercriminals. He also believes that hackers may already be plotting strategies to take over Bitcoin ETF funds.
Impact on DELTA Token Value
The attack had immediate repercussions for Delta Primeâs native DELTA token. According to Dune Analytics, Bitcoin ETFs hold a staggering $53.4 billion in assets on-chain, making them high-profile targets for future attacks. Following the Delta Prime hack, the value of the DELTA token plummeted. Previously trading at $1.08, the token saw a sharp drop of 6%, falling to $0.997 within hours of the breach. This swift decline fueled panic among investors and severely damaged the platformâs reputation.
The recent attack on Delta Prime underscores the escalating security challenges within the DeFi space. As more funds flow into decentralized finance platforms, the need for robust security measures becomes increasingly urgent. The Bit Journal will continue to monitor these developments closely as the industry grapples with growing threats.
