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Crypto Broker DeltaPrime Loses $6M to Private Key Exploit

The hacker siphoned the illicit funds by exploiting DeltaPrime’s Arbitrum interface, excluding its Avalanche-based counterpart.

Avatar image of Mishael Nwani Mishael Nwani•September 16, 2024
ALEX

Cross-chain crypto brokerage project DeltaPrime suffered a $6 million security breach in the early European hours. Chaofan Shou, co-founder of analytics platform Fuzzland, was among the first to detect the exploit and notify the project via X.

DeltaPrime Part Ways With $6M

DeltaPrime offers users decentralized lending, borrowing, and investing. Touting itself as a “prime brokerage,” the platform promises trustless lending, high deposit rates, and high capital efficiency. DeltaPrime operates on the Arbitrum (DeltaPrime Blue) and Avalanche (DeltaPrime Red) blockchains.

It is worth noting that the latest attack affected only DeltaPrime Blue. Shou’s investigation showed that the hacker gained illicit control of the admin of proxies, a crucial contract serving as an intermediary between users and other smart contracts. Such an exploit can potentially impact the entire protocol.

Cyvers, another blockchain security protocol, identified three pools affected by the attack: “the #DPUSDC, #DPARB, #DPBTCb” pools.

Shou noted that the hacker capitalized on a private key breach to drain pools on DeltaPrime’s Arbitrum platform (DeltaPrime Blue). Shockingly, this fresh exploit aligns with a list of other crypto hacks where private keys were compromised to facilitate security attacks. The most recent was the Indonesian crypto exchange Indodax, which suffered a $22 million attack last week.

DeltaPrime Comments

The project addressed the matter over three hours after Shou and other blockchain security platforms detected the exploit. The DeltaPrime team assured users that the stolen funds are currently being tracked.

The announcement calmed its users on the Avalanche network, saying that DeltaPrime Red was unaffected by the attack since “the implementation here is covered solely by multisigs and cold wallets (as it should be).”

Meanwhile, DeltaPrime’s native token, PRIME, saw over a 6% price drop at the time of writing.

Mishael Nwani

Mishael Nwani is an avid crypto enthusiast with nearly four years of experience in the industry. Since 2022, he has covered topics across cryptocurrencies, NFTs, artificial intelligence, and financial markets.