DeFi protocol Delta Prime suffers $6 million exploit after admin lost control of private key

DeFi platform Delta Prime has been hit with a $6 million after an administrator’s private key was leaked, Chaofan Shou, founder of security firm Fuzzland, told The Block. The attack occurred on Arbitrum, the largest Ethereum Layer 2. 

“A hacker gained control of 0xx40e4ff9e018462ce71fa34abdfa27b8c5e2b1afb, which is the admin of proxies. Then, the hacker upgraded the proxies to point to malicious contract 0xD4CA224a176A59ed1a346FA86C3e921e01659E73,” Shou wrote on X. 

The hacker initially only drained about $4.5 million but was able to continue attacking the protocol to steal funds. 

Delta Prime acknowledged that its deployment on Arbitrum was compromised but noted the variation on Avalanche had not been affected. The company is currently investigating the cause of the “compromised private key.”

“The risk is contained, we're working on asset-retrieval and the insurance pool will cover any potential losses where possible/necessary. Additionally, we're looking into other ways to reduce user losses to a minimum,” the Delta Prime team said.