Another scam has hit the cryptocurrency industry; this time, on-chain brokerage Delta Prime is the victim. On Monday, a private key leak drained over $6 million in stablecoins from the crypto broker’s wallets. According to some on-chain analysts, the perpetrator of the attack has already swapped the siphoned assets for Ethereum (ETH).
Delta Prime Hacker Steals Crypto on Arbitrum
Markedly, the Delta Prime project is offered on Arbitrum and Avalanche protocols. However, the Monday exploit impacted only the version on Arbitrum. Users were shut out from withdrawing funds due to how the utilization of borrowing and lending works on the platform. The exploit was conducted in separate transactions, and some of the affected pools are DPUSDC, DPARB, and DPBTCb.
🚨ALERT🚨Our system has detected multiple suspicious transactions involving @DeltaPrimeDefi on $ARB chain! (Still ongoing)
It seems that admin has lost the private key. Suspicious address still draining the pools! Affected pools so far are the #DPUSDC, #DPARB, #DPBTCb !… pic.twitter.com/8sXanAaCwe
— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) September 16, 2024
According to onchain security platform Cyvers, the Decentralized Finance (DeFi) platform first lost $4.5 million to the hacker. The pool’s drainage continued, and the losses summed up to $6 million at the end of the day. Although the Delta Prime team claimed they are investigating the attack, there are suspicions that a recurrence may occur if nothing is done to salvage the situation.
For context into how the bad actors completed this theft, Fuzzland founder Chaofan Shou explained that the hacker gained control of “0xx40….b1afb,” the proxies admin. Thereafter, the hacker upgraded the proxies to point to malicious contract “0xD4C….659E73.”
Once this was achieved, the hacker could successfully drain Delta Prime pools on the Arbitrum chain.
WazirX Refund Users After $235M Crypto Attack
This attack comes only two months after WazirX suffered a similar exploit. The Indian cryptocurrency exchange lost over $230 million to a major security breach on one of its multisig wallets. The stolen assets include $100 million worth of Shiba Inu (SHIB), $52 million in Ethereum (ETH), $11 million in Polygon’s MATIC, and $6 million in PEPE.
WazirX introduced a fair and transparent socialized loss strategy for user fund recovery as a post-hack measure. The loss strategy involved a 55/45 approach, where users can gain immediate access to 55% of their assets while the other 45% is locked in Tether USDT-equivalent tokens.
For now, no information has been officially released about the Delta Prime attack, and nothing has been said about a reimbursement strategy for users.
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