DeFi Protocol DeltaPrime Suffers $5.9 Million Loss in Private Key Exploit
Crypto cybersecurity firm Cyvers has reported a security incident affecting DeltaPrime, a decentralized finance (DeFi) protocol on the Arbitrum network.
According to a
tweet
from Cyvers, the ongoing incident resulted in an initial estimated loss of $4.5 million—subsequently
updated
to $5.93 million as a “suspicious address” continued to drain funds from DeltaPrime’s liquidity pools.
The security firm stated that their system detected “multiple suspicious transactions” involving DeltaPrime on the Arbitrum (ARB) chain, adding that the protocol's administrator may have lost control of their
private key
private key
, leading to unauthorized access to the platform's
smart contracts
.
Control over this key allowed the entity to update the proxy smart contract to execute the attack.
The incident has affected several of DeltaPrime's liquidity pools, including DPUSDC, DPARB, and DPBTCb. Cyvers noted that the address associated with the suspicious activity has begun converting
USDC
tokens to
Ethereum
(ETH).
The news follows
mid-July reports
that cross-chain DeFi protocol Li.Fi is suspected to have lost about $11 million in cryptocurrencies in an exploit. Reports at the time indicated that a wallet linked to the hack held nearly $6 million in Ethereum alongside numerous stablecoins.
In a similar early August incident, cross-chain gaming-focused bridge Ronin
saw $12 million siphoned
from its wallets by white-hat hackers. They subsequently contacted Ronin’s developers to arrange for the return of the funds that they had preemptively siphoned from the bridge in order to prevent a bad-faith hack.