On September 16, 2024, DeltaPrime, a decentralized cryptocurrency broker, suffered a serious hack that resulted in the loss of over $6 million. The attack, which involved the leak of private keys, targeted the Arbitrum network and was the second major security breach in just two months. This has raised concerns about the platform’s operational security capabilities.
Hacker takes over admin control
The hacker was able to exploit DeltaPrime’s admin proxy to redirect contracts to malicious addresses. This allowed them to drain funds from major liquidity pools, including DPUSDC, DPARB, and DPBTCb, which hold USDC stablecoin, ARB tokens, and Bitcoin.
Blockchain security experts quickly identified the breach. CybersA well-known security firm has confirmed that hackers have compromised DeltaPrime’s private keys, resulting in an exploit. The attack has caused lending and borrowing services to be disrupted, leaving users unable to withdraw funds from DeltaPrime’s Arbitrum platform.
DeltaPrime Repeated Security Breach
This latest hack follows a similar incident in July 2024, when DeltaPrime suffered a $1 million hack due to a system error. At that time, attackers accessed user accounts and withdrew collateral. While DeltaPrime claimed to have strengthened security and compensated users since the first hack, the platform is now under increased scrutiny due to repeated vulnerabilities.
Adding to these concerns, blockchain researcher ZachXBT recently uncovered that DeltaPrime previously employed North Korean IT workers. DeltaPrime fired these workers after being warned, but speculation about a link to North Korean cyber activity in the recent hack still lingers.
History of North Korea’s Crypto Attacks
North Korean hackers have a notorious history of targeting cryptocurrency platforms. They have been linked to several high-profile breaches, including the $235 million hack of WazirX and the $20 million attack on Indodax. Their strategy often involves infiltrating companies from the inside, leading to sophisticated and large-scale exploits.
Impact on PRIME Tokens
After news of the attack broke, DeltaPrime The native token, PRIME, has lost 6.5% of its value. This decline reflects the broader market downturn led by Ethereum (ETH). As the platform struggles to recover from the breach, users are increasingly concerned about its long-term security and stability.
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