Again! DeltaPrime Loses Nearly $4.8M to Hackers in Fresh Exploit

Cross-chain crypto protocol DeltaPrime has parted ways with nearly $4.8 million in a fresh exploit. The security breach affected the project’s on-chain operations on layer-1 blockchain Avalanche and layer-2 blockchain Arbitrum. Notably, this is the second security attack DeltaPrime has faced within the past two months.

DeltaPrime was just exploited on Avalanche and Arbitrum for a total of (initial estimate) $4.75mm.

With the protocol being paused on both chains, the risk is contained. We will provide updates asap.

— DeltaPrime (@DeltaPrimeDefi) November 11, 2024

DeltaPrime Loses Almost $4.8M

The blockchain security platform PeckShield was among the first to identify suspicious on-chain activities and notify the cross-chain protocol.

Less than two hours later, PeckShield revealed that DeltaPrime’s hacker moved about $1.3 million worth of crypto assets to the decentralized exchange LFJ (formerly Trader Joe) and farmed USDC on the decentralized finance (DeFi) protocol Stargate.

The DeltaPrime developer team acknowledged the attack via an X tweet. The post explained that the protocol’s activities on Avalanche and Arbitrum have been paused to contain the losses.

Despite DeltaPrime’s prompt response to the latest exploit, users are unhappy and unsatisfied with the protocol’s services. Many reference the protocol’s exploit in September as a reason to “give up” on the project. During the initial attack two months ago, approximately $6 million was stolen from the protocol’s Arbitrum platform. In the latest exploit, however, its Avalanche and Arbitrum layers took a hit.

According to data from the on-chain analytics platform DeFiLlama, both exploits have plunged DeltaPrime’s total value locked (TVL) to lower levels. Following its first exploit, its TVL plunged from $65 million to $44 million in days. At the time of writing, the protocol’s TVL is $35.7 million.

More Crypto Hacks

The latest security breach underscores the need for strengthened protocol security among crypto projects, especially those building in the DeFi sector.

In the past few months, projects like Radiant Capital, M2, and BingX have suffered security attacks, resulting in millions of dollars being lost to bad actors.