On September 16, 2024, DeltaPrime, a decentralized crypto broker, suffered a significant hack that resulted in a loss of over $6 million. The attack, caused by a private key leak, targeted the Arbitrum network and is the second major security breach in just two months. This raises growing concerns about the platform’s ability to secure its operations.
Hacker Seizes Admin Control
The hacker exploited DeltaPrime’s admin proxy, enabling them to redirect contracts to malicious addresses. By doing so, they were able to drain funds from key liquidity pools, including DPUSDC, DPARB, and DPBTCb. These pools hold USDC stablecoins, ARB tokens, and Bitcoin.
Blockchain security experts quickly identified the breach. Cyvers, a well-known security firm, confirmed the hacker had compromised DeltaPrime’s private key, which led to the exploit. This attack rendered users unable to withdraw funds from DeltaPrime’s Arbitrum platform, as it disrupted the borrowing and lending services.
DeltaPrime Recurring Security Breaches
This latest hack follows a similar incident in July 2024 when DeltaPrime was hacked for $1 million due to a system misconfiguration. At that time, attackers managed to access user accounts and withdraw collateral. Despite DeltaPrime’s claims of bolstering its security after the first hack and compensating users, the platform now faces heightened scrutiny due to its repeated vulnerabilities.
Adding to these concerns, blockchain investigator ZachXBT recently uncovered that DeltaPrime had previously hired North Korean IT workers. DeltaPrime fired these workers after a warning, but speculation still lingers about a possible link to North Korean cyber activity in the recent hack.
North Korea’s History of Crypto Attacks
North Korean hackers have a notorious history of targeting crypto platforms. They’ve been linked to multiple high-profile breaches, including the $235 million hack at WazirX and a $20 million attack on Indodax. Their strategy often involves infiltrating firms from the inside, leading to sophisticated, large-scale exploits.
Impact on PRIME Token
Following the news of the attack, DeltaPrime’s native token, PRIME, experienced a 6.5% drop in value. This decline mirrored a broader market downturn, led by Ethereum (ETH). As the platform scrambles to recover from the breach, users are increasingly concerned about its long-term security and reliability.
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