Delta Prime Losese $6 Million in the Latest DeFi Hack, Sparking Security Concerns

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The decentralized finance (DeFi) platform Delta Prime recently witnessed a major cyberattack, causing it to lose at least $6 million in digital currencies.

According to an X post by on-chain security platform Cyvers, Delta Prime first lost approximately $4.5 million in crypto assets. Subsequent waves of suspicious transactions brought the total loss to $6 million.

Private Key Exploit Leads to $6 Million Delta Prime Hack, Highlighting DeFi Security Gaps

According to Cyvers, the hackers had already converted the stolen USDC (USD Coin) into Ethereum (ETH). 

At the time of the report, Cyvers warned that the total loss would likely rise as the suspicious address linked to the attack continues to siphon funds from the platform’s liquidity pools.

Delta Prime’s ordeal escalated quickly as another series of malicious transactions emerged following the initial loss of around $4.5 million. So far, the hacker has drained nearly $6 million from the protocol. Chaofan Shou, the co-founder of blockchain security firm Fuzzland, highlighted this in an X post.

$6M drained now ;0

— Chaofan Shou (@shoucccc) September 16, 2024

This attack on Delta Prime is part of a troubling pattern of high-profile cryptocurrency hacks. The massive breach, in which hackers stole over $230 million, hit WazirX, a prominent Indian cryptocurrency exchange, just two months earlier.

The WazirX hack is currently ranked as the second-largest cryptocurrency theft of 2024. The recurrent nature of these incidents underscores the growing threat in the crypto ecosystem.

According to Meir Dolev, Cyvers’s Chief Technology Officer, the Delta Prime breach likely originated from a private key exploit. This type of exploit typically involves unauthorized access to a private key essential for controlling wallets and smart contracts.

🚨ALERT🚨@DeltaPrimeDefi has faced a security incident on their admin keys.
Attacker had control on the private key of 0xx40e4ff9e018462ce71fa34abdfa27b8c5e2b1afb
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/7QJfVUZqSU

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

In Delta Prime’s case, the hackers gained control of the wallet that functioned as the administrator for the protocol’s proxy contracts. After gaining access, the attackers performed a malicious contract upgrade. They reprogrammed the platform’s contracts to redirect to their fraudulent contract.

By doing this, the hackers could drain Delta Prime’s liquidity pools, which are hosted on the Arbitrum blockchain. This blockchain is a popular Layer 2 scaling solution for Ethereum.

Delta Prime’s loss amounted to $5.9 million, with more potential damage looming as the hacker’s action could continue.

Speaking to Cointelegraph, Dolev outlined how this breach highlights a growing vulnerability within decentralized finance (DeFi) platforms. He focused more on contract security and private key management.

In this case, manipulating proxy contracts enabled the hackers to bypass regular security mechanisms. This reveals the inherent risks when developers fail to secure smart contracts properly against constant malicious upgrades.

North Korean Hackers Eye $53 Billion Bitcoin ETFs as Next Target, FBI Warns.

There is a growing concern that North Korean hackers, particularly the notorious Lazarus Group, may soon target high-profile financial products such as US-based Bitcoin ETFs. 

These ETFs hold large reserves of Bitcoin, making them a lucrative target for cybercriminals. A successful hack could yield significant gains for bad actors.

Michael Pearl, Vice President of GTM strategy at Cyvers, expressed these concerns during an exclusive interview with Cointelegraph. According to Pearl, North Korean hacking groups’ shift in focus towards Bitcoin ETFs could be driven by the potential for large-scale financial rewards.

Pearl also referenced a recent warning from the FBI, highlighting the increasing likelihood that North Korean hackers will attempt to infiltrate and steal from these Bitcoin ETFs.

He explained that Bitcoin ETFs store large amounts of the cryptocurrency in custodial wallets. While these wallets are often highly secured, hackers are also plotting ways to bypass these defenses.

According to data from Dune, these ETFs collectively store approximately $53.4 billion worth of Bitcoin in on-chain holdings. Therefore, this immense value makes them highly attractive to cybercriminals, especially as they explore more sophisticated methods.