The post DeltaPrime DeFi Suffers $6 Million Hack on Arbitrum Network appeared first on Coinpedia Fintech News

DeltaPrime DeFi, which runs on the Arbitrum platform, has been dealt a major blow in the form of a hack. The attack that took place at 6:14 AM CET led to a loss of $5. 98 million to liquidity pools belonging to the provider DeltaPrime was first flagged by Cyvers alerts. 

The breach took place after an attacker was able to obtain the admin’s private key and siphoned off several of the platform’s pools such as DPUSDC, DPARB, DPWETH, and DPBTCb.

Exploiting the Private Key

The main attack was built on the possibility of using a private key connected with the admin account of DeltaPrime. With the help of this key, the attacker was able to execute a transaction that upgraded the proxy contract and took control of all the given platform’s liquidity pools. Initially, the total of the estimated loss was $ 4.5 million and later rose to almost $6 million ($5.98).

The address which was found to be associated with the hacker exchanged the USDC for ETH in an effort to avoid the USDC from being frozen. To prevent tracking the hacker transferred 1,200 ETH, approximately $2. 8 million to another address.

DeltaPrime Blue VS DeltaPrime Red

Thankfully, the above attack does not affect DeltaPrime Red, which runs on the Avalanche blockchain. In an official announcement, the team mentioned that DeltaPrime Red is protected by multisigs and cold wallets meaning that the hacking was done on DeltaPrime Blue in Arbitrum only as the rest of the funds were not compromised.

Continuing operation on the recovery of assets

DeltaPrime DeFi has started the process of recovering the lost funds, and an insurance pool will be used to possibly replace users’ funds. The team has noted that they are testing several strategies to reduce the impact on users as well as stressing on security endeavors to prevent such an attack in the future.

The attack underlines the primacy of the private key protection issue in the DeFi sphere since many professionals have noted that the use of Web3 security tools could indicate suspicious transactions, for example, the proxy upgrade, which would help prevent the loss of assets.

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