DeltaPrime faces second $4.75M hack in two months

DeltaPrime, a decentralised finance (DeFi) protocol, has reported a second hack within two months, resulting in a $4.75 million loss.

This breach, which impacted its pools on the Arbitrum (CRYPTO:ARB) and Avalanche (CRYPTO:AVAX) networks, was disclosed on November 11.

Blockchain analysts, including CertiK, traced the vulnerability to a periphery adaptor contract that allowed the attacker entry.

In response, DeltaPrime paused operations on both networks to prevent additional losses.

"DeltaPrime was just exploited on Avalanche and Arbitrum for a total of (initial estimate) $4.75m. With the protocol being paused on both chains, the risk is contained. We will provide updates asap," read the protocol's X announcement.

This incident follows a previous attack in September that led to a $6 million loss due to issues with private key security.

While DeltaPrime has faced scrutiny over alleged ties to North Korean IT workers, no confirmed link between these claims and the security breaches has been established.

October 2024 witnessed a surge in crypto-related security incidents, with $129 million lost across 20 separate hacks and exit scams.

Radiant Capital was among other significant victims.

DeltaPrime, launched in January 2023, initially attracted strong interest with over $63 million in total value locked and more than $20 million in liquidity, supported by notable backers such as Avalanche, GSR Capital, and Uplift.

Community members expressed their concerns about repeated security failures.

“I don’t understand how it’s possible to get hacked twice for a DeFi app, it’s all about money so it should always be the best security level, best audits, best practices,” one user remarked.

The attacker demonstrated technical expertise, directing $1.3 million of stolen assets into liquidity farming through LFJ and USDC on Stargate.

DeltaPrime has since implemented enhanced security measures to curb further vulnerabilities and aims to regain user confidence amid rising cybersecurity challenges in the crypto sector.