DeltaPrime allegedly suffers second attack, losing over $4.7m

Crypto broker DeltaPrime appears to have fallen victim to a $4.7 million hacker attack for the second time since September.

Blockchain analysts are warning that DeltaPrime, a decentralized crypto protocol backed by Avalanche and GSR Markets, allegedly lost $4.75 million worth of tokens due to the emptying of multiple pools on Arbitrum.

On Monday, November 11, reports emerged of platform abuse due to a vulnerability in the peripheral adapter contract. Analysts from blockchain analysis firm CertiK stated that the stolen funds were kept at 0x56…634c. Following the attack, DeltaPrime confirmed the incident, saying hackers stole a total of $4.75 million worth of crypto by leveraging pools at Avalanche and Arbitrum.

DeltaPrime was exploited on Avalanche and Arbitrum for a total (initial estimate) of $4.75 million.

Risk is controlled by pausing the protocol on both chains. We will provide updates as soon as possible.

— DeltaPrime (@DeltaPrimeDefi) November 11, 2024

This is the second time the protocol has been targeted by hackers, with the previous incident in September causing a loss of $6 million. At the time, attackers were exploiting weak private key security to gain control of and dump the project’s vulnerable contract.

Blockchain detective ZachXBT previously noted that DeltaPrime had previously hired North Korean IT workers. However, the analyst emphasized that all flagged personnel have been suspended and questions about any connection between the hack and North Korea remain unresolved.

The protocol’s official website states that DeltaPrime, which first launched on the Avalanche network in January 2023, has achieved a total value of more than $63 million and unlocked more than $20 million in liquidity. The protocol has raised funding from Avalanche, GSR Capital, Moonhill Capital, and Uplift, among others.