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

Quick Take

  • DeFi protocol Delta Prime suffered a $6 million exploit after an administrator lost control of the private key.
  • The team says the risk is contained and only affected its deployment on Arbitrum.

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.


Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Daniel Kuhn is a Senior Journalist and Editor at The Block, where he covers the crypto industry with a particular focus on tech. He previously served as deputy managing editor of opinion/features at CoinDesk. He first appeared in print in Financial Planning, a trade publication magazine. Before journalism, he studied philosophy as an undergrad, English literature in graduate school and business and economic reporting at an NYU professional program. You can connect with him on Twitter and Telegram @danielgkuhn or find him on Urbit as ~dorrys-lonreb.

Editor

To contact the editor of this story:
Lawrence Lewitinn at
[email protected]