The decentralized finance (DeFi) protocol DeltaPrime has reported a significant hack on its system operating within the Arbitrum blockchain. Initially, it was discovered that approximately $4.5 million was stolen, but subsequent malicious transactions have increased the total loss to nearly $6 million.
Details of the Attack
On-chain security firm Cyvers confirmed there were âmultiple suspicious transactionsâ associated with DeltaPrime. The affected pools include USDC stablecoins, Arbitrumâs ARB, and Bitcoin (BTC).
According to Cyversâ CTO Meir Dolev, the attack is believed to have occurred due to the compromise of a private key. The hackers took control of the admin wallet managing the protocolâs proxy contracts, redirecting these contracts to a malicious contract and draining the pools on Arbitrum, resulting in a theft of approximately $6 million.
Investigation Continues
Details regarding how the private key was compromised are still being investigated. Blockchain analyst ZachXBT noted that DeltaPrime had previously employed North Korean IT workers, although it remains unclear if this is related to the current attack. DeltaPrime has yet to issue an official statement concerning the incident.
North Korean hackers are increasingly linked to large-scale cyber attacks on cryptocurrency exchanges. The U.S. government has connected North Korean cybercriminals to several major hack incidents, including the $600 million theft from Axie Infinity in 2022. The United Nations accuses North Korea of using cyberattacks to finance its nuclear and missile programs, which North Korea denies.
This attack follows a substantial breach suffered by Indian cryptocurrency exchange WazirX two months ago, resulting in over $230 million in losses. These high-profile attacks are seen as part of an increasing trend of cyber attacks in the cryptocurrency sector in 2024. Blockchain researcher TRM Labs reported that the amount of stolen cryptocurrency globally has more than doubled in the first half of 2024, exceeding $1.38 billion by June, compared to $657 million during the same period in 2023.
As the investigation progresses, the crypto community will closely monitor DeltaPrime's response and the measures it will take to prevent future attacks. This incident once again highlights the vulnerability of decentralized finance protocols regarding security. The safety of private keys and access to admin wallets are critical for maintaining the integrity of protocols. In light of increasing hack incidents, the DeFi ecosystem must develop stronger security protocols and take proactive measures to minimize user losses.
