Arbitrum

DeFi

Apple

USDC

Avalanche

<p>DeltaPrime DeFi, which operates on the Arbitrum platform, suffered a significant security breach, resulting in the loss of $5.98 million. The attack took place at 6:14 AM CET and was first reported by Cyvers alerts.</p>   
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<p>Everyone, understandably, is in shock. Here's all you need to know. </p>   
<h2 class="wp-block-heading" id="h-exploiting-the-private-key"><strong>Exploiting the Private Key</strong></h2>   
<p>The hacker managed to access the platform by obtaining the admin’s private key. With this key, they drained liquidity pools like DPUSDC, DPARB, DPWETH, and DPBTCb. They executed a transaction that upgraded the proxy contract, giving them control of the platform's funds. Initially, the loss was estimated at $4.5 million but later increased to almost $6 million.</p>   
<p>The attacker quickly exchanged the stolen USDC for ETH, aiming to avoid USDC being frozen. To cover their tracks, they transferred 1,200 ETH (around $2.8 million) to another address.</p>   
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<h3 class="wp-block-heading" id="h-deltaprime-blue-vs-deltaprime-red"><strong>DeltaPrime Blue VS DeltaPrime Red</strong></h3>   
<p>Thankfully, the above attack does not affect DeltaPrime Red, which runs on the Avalanche blockchain. In an <a href="https://x.com/DeltaPrimeDefi/status/1835603279369125893" target="_blank" rel="noreferrer noopener nofollow">official announcement</a>, the team mentioned that DeltaPrime Red is protected by multisigs and cold wallets meaning that the hacking was done on DeltaPrime Blue in Arbitrum only as the rest of the funds were not compromised.</p>   
<h2 class="wp-block-heading" id="h-recovery-and-compensation-plans"><strong>Recovery and Compensation Plans</strong></h2>   
<p>DeltaPrime is now working on recovering the stolen funds. The team is also considering using an insurance pool to compensate affected users. They are testing various strategies to minimize the damage and are focusing on improving security to prevent future breaches.</p>   
<p>This incident highlights the critical importance of protecting private keys in DeFi. Experts have noted that using Web3 security tools might have flagged the proxy upgrade and prevented the attack, serving as a reminder of the need for stronger security measures.</p>   
<p>Also Check Out: <a href="https://coinpedia.org/news/crypto-hack-weekly-report-indodax-heist-caterpillar-coin-collapse-and-apples-deepfake-incident/" target="_blank" rel="noreferrer noopener">Crypto Hack Weekly Report: Indodax, Caterpillar Coin, and Apple Targeted in Major Scams</a></p>   
<p><strong>Has this incident shaken your trust in DeFi? Share your perspective.</strong></p>

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