- 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.
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.
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