The decentralized finance (DeFi) protocol DeltaPrime recently suffered a significant loss due to a private key exploit, resulting in the theft of $5.9 million. The incident was detected by cybersecurity firm Cyvers, which identified multiple suspicious transactions that drained DeltaPrime’s liquidity pools.
How the Hack Occurred
According to Cyvers, the attackers gained control of DeltaPrime’s private key, allowing them to manipulate the protocol’s smart contracts and access its liquidity pools. The compromised pools included DPUSDC, DPARB, and DPBTCb, where funds were stolen and quickly converted from USDC to Ethereum (ETH). The attackers used the Arbitrum blockchain to execute these transactions, taking advantage of the decentralized nature of the platform.
Broader Trend of DeFi Hacks
This attack on DeltaPrime is part of a broader trend of security breaches within the DeFi sector. Earlier this year, other prominent DeFi platforms like Li.Fi and Ronin were also victims of large-scale exploits, resulting in losses of $11 million and $12 million, respectively. These incidents highlight the growing threat of hacking within the DeFi space, as more sophisticated methods are used to compromise protocols and steal user funds.
Impact on DeltaPrime
Following the attack, DeltaPrime's team has been working to assess the full extent of the damage and ensure that the platform’s security is reinforced to prevent future breaches. The incident is a stark reminder of the risks inherent in DeFi, where the decentralized nature of the platforms makes it difficult to recover stolen assets once a breach has occurred.
For more information on the breach, visit the original article on
Decrypt.
