DeltaPrime, an Avalanche-based DeFi borrowing protocol, is reportedly facing a security breach that may have resulted in the loss of $5.93 million worth of cryptocurrencies from its wallets.
The incident, which came to light in the early hours of September 16, is believed to stem from an admin private key leak, according to Fuzzland co-founder Chaofan Shou.
While the precise details of the private key breach remain unclear, there are speculations that there is a potential connection between the hack and North Korea. Blockchain investigator ZachXBT pointed out that DeltaPrime had previously hired North Korean IT workers. They, however, emphasized that these flagged employees had been removed, leaving this potential link still uncertain.
Blockchain researchers at Cyvers Alerts highlighted in a post on X that the hack specifically targeted DeltaPrime’s version deployed on Arbitrum. They reported that the hacker had already converted the stolen USD Coin (USDC) to Ethereum (ETH). The researchers also observed ongoing draining of various pools, including DPUSDC, DPARB, and DPBTCb.
As of press time, DeltaPrime’s team has not provided any official updates or verification of these claims. It’s also unclear whether the protocol’s Avalanche network deployment faces similar vulnerabilities.
DeltaPrime is a trustless borrowing platform on Avalanche and Arbitrum. Depositors lend funds by placing assets into liquidity pools (e.g., $AVAX or $ARB), while borrowers can take out these assets and pay interest. Interest rates fluctuate based on the supply and demand of the asset.
This incident adds to a series of recent crypto hacks, including the July breach of the Indian exchange WazirX. The hacker reportedly moved approximately $23 million in stolen assets to Tornado Cash on September 12. According to Cyvers Alerts in a post on September 12, a hacker stole $230 million from WazirX wallets, transferring 5,000 ETH to a new address and $4.7 million to Tornado Cash. They also sold $7.6 million worth of $PEPE tokens and continue liquidating assets via UniSwap.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
