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Delta Prime Loses $5.98M to Ongoing Attack on Admin Keys

Delta Prime Loses $5.98M to Ongoing Attack on Admin Keys

DailyCoinDailyCoin2024/09/16 13:46
By:DailyCoin
  • DeFi platform Delta Prime has been hacked for millions.
  • Security experts flagged the attack as “ongoing.”
  • The total loss arising from the incident “might increase.”

Decentralized borrowing protocol Delta Prime is the latest crypto platform to suffer a security breach, losing millions barely a week after Indonesia’s largest exchange Indodax was hacked for $22 million.

On Monday, blockchain security firm Cyvers flagged multiple suspicious transactions involving the DeFi platform on the Arbitrum chain, noting that the attacker’s address was draining funds from various lending pools, including DPUSDC, DPARB, and DPBTCb.

The Hack Is Ongoing

Noting that Delta Prime’s admin could have lost the platform’s private key, Cyvers estimated the hack’s loss at $4.5 million and cautioned that this figure “might increase” as the suspicious address was still draining the pools.

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Cyvers issued a second update, confirming that the attacker had taken control of the private key before upgrading the proxy to point to a malicious contract. Per Fuzzland co-founder Chaofan Shou, the malicious contract could “inflate” the hacker’s deposited amount on all pools.

While Cyvers noted that $5.93 million had been drained, Shou estimated the loss at $6 million.

🚨ALERT🚨 @DeltaPrimeDefi has faced a security incident on their admin keys.
Attacker had control on the private key of 0x40e4ff9e018462ce71fa34abdfa27b8c5e2b1afb
then he upgraded the proxy!

So far $5.93M has been drained!

Want to keep your company off our alerts radar? Learn… https://t.co/yOmNZJyp5l pic.twitter.com/lztFvXVmfI

— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) September 16, 2024

Two hours after Cyvers’ and Shou’s alerts, Delta Prime issued an update, noting that the attacker had drained its Arbitrum market for $5.98 million.

“This was due to a compromised private key, the source of which is currently under investigation,” Delta Prime wrote on X. “The risk is contained, we're working on asset-retrieval and the insurance pool will cover any potential losses where possible / necessary. Additionally, we're looking into other ways to reduce user losses to a minimum.”

The protocol said it would keep users updated on further steps following the incident and clarified that its lending market on Avalanche was not vulnerable to the attack.

Stay updated on how stablecoin issuers blacklisted the Lazarus Group:
Tether and Others Freeze Millions Tied to Lazarus Group Wallets

Read about the new malware targeting crypto users on Android:
Crypto Hack Alert: New SpyAgent Malware Targets Android

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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