Delta Prime DeFi Protocol Falls Victim to $4.8M Exploit – Peckshield

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Hassan Shittu

Journalist

Hassan Shittu

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Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors. His work has appeared in…

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Delta Prime, a decentralized finance (DeFi) protocol known for its operations on the Avalanche and Arbitrum networks, recently suffered a significant security exploit, resulting in the loss of an estimated $4.8M in crypto assets.

The exploit is DeltaPrime’s second major security incident this year, following a $6 million hack in September. This recent breach is attributed to vulnerabilities within the protocol’s periphery adaptor contract.

Delta Prime’s Second Exploit This Year: How Another $4.8M Got Stollen

Blockchain analytics firm PeckShield first raised the alarm, revealing that the exploiter had compromised the protocol on both the Avalanche and Arbitrum networks.

The stolen assets were reportedly distributed across multiple platforms. The hacker allocated approximately $1.3 million to liquidity provision on LFJ (formerly known as Trader Joe) and farming USDC on Stargate.

Responding to the incident, DeltaPrime quickly paused its protocol on both chains to contain further risks, assuring users that it would provide timely updates as investigations progressed.

The hack on DeltaPrime exploited a flaw in the periphery adaptor contract, enabling the attacker to drain multiple pools on both Avalanche and Arbitrum.

DeltaPrime confirmed the incident on social media, stressing that swift protocol pausing was essential to contain risks across its network.

DeltaPrime’s Road Ahead Amidst Investor Concerns

DeltaPrime was launched on the Avalanche network in early 2023. It rapidly gained traction in the DeFi space, attracting over $63 million in total value locked and unlocking more than $20 million in liquidity on its platform.

Industry leaders such as Avalanche, GSR Capital, Moonhill Capital, and Uplift have backed the project. The platform seeks to create a secure ecosystem for DeFi enthusiasts.

However, recurrent security issues may impact investor confidence, particularly as blockchain analysts question potential connections to prior operational missteps.

Analysts like blockchain investigator ZachXBT recently disclosed that DeltaPrime had previously employed individuals with suspected ties to North Korea, though these personnel were reportedly dismissed.

While there is no confirmed link between this latest breach and any external actors, DeltaPrime’s security framework and staffing decisions will likely remain in focus as investigations continue.

The $4.8 million breach is notably not DeltaPrime’s first incident. In September, it faced a similar security issue, which resulted in losses exceeding $6 million.

In that case, attackers exploited weak private key security, gaining access to and draining assets from vulnerable contracts.

The report shows that the exploit affected DeltaPrime’s Arbitrum-based version, with hackers continuously draining assets from pools, including USDC, ARB, and BTCb.

The team confirmed that the compromised admin key gave hackers access to all pools and urged users to withdraw their funds immediately.

The back-to-back attacks have fueled discussions about DeltaPrime’s overall security preparedness and whether additional preventive measures will be implemented to safeguard user funds.

With many community slams and concerns, the latest incident places DeltaPrime at a crossroads as it grapples with the repercussions of the $4.8 million loss, community trust issues, and an urgent need for enhanced security protocols.

Following this latest hack, DeltaPrime’s native token, PRIME, dropped by 1.2% and is currently trading around $1.28, according to CoinGecko

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