DeltaPrime DeFi Protocol Lost $5.9M in Ongoing Exploit: Report

The exploit has primarily affected DeltaPrime's operations on the Arbitrum blockchain, with losses expected to rise.

Exploit Details

The breach occurred when a hacker gained control of the admin private key for DeltaPrime's proxies. This key, associated with the address 0xx40e4ff9e018462ce71fa34abdfa27b8c5e2b1afb, allowed the attacker to redirect funds to a malicious contract identified as 0xD4CA224a176A59ed1a346FA86C3e921e01659E73. 

Per reports, the hacker’s actions included draining pools like DPUSDC, DPARB, and DPBTCb. Cyvers reported that the stolen funds were converted from USDC to Ethereum (ETH).

As of the latest reports, the estimated loss is approximately $5.93 million; however, this figure may increase as the suspicious address continues to drain funds. 

“Hacker took control of the wallet which is the admin of Delta Prime proxy contacts, later on, upgraded these contracts to point to his malicious contract this enabled the hacker to drain Delta Prime pools on Arbitrum chain. Total loss is  5.9 million USD,” Meir Dolev, CTO, CyVers, told BSCN.

The DeltaPrime team has yet to comment publicly on the incident, and it remains unclear whether the protocol’s deployment on the Avalanche network is also vulnerable.

Background on DeltaPrime

It received significant backing from investors such as Avalanche, GSR Capital, Moonhill Capital, and Uplift.