DeltaPrime, a decentralized borrowing protocol and crypto broker, has been hit by a significant security breach resulting in over $6 million in losses. The exploit, identified by blockchain security firm Cyvers, affected the Arbitrum version of the platform and is attributed to a private key leak.
Several blockchain security experts and analysts noted this breach and shared that the hacker had gained control of Delta Prime admin proxy. This access enabled the attacker to upgrade the proxy and direct it toward a malicious contract. This resulted in draining of multiple liquidity pools including DPUSDC, DPARB, and DPBTCb.
Blockchain security firm Cyvers confirmed the exploit and shared post on X, stating that they detected “multiple suspicious transactions” related to DeltaPrime. According to the firm, the incident occurred due to the admin losing control of a private key, allowing unauthorized access to platform funds. As a result, users were temporarily unable to withdraw their assets from the Arbitrum version of DeltaPrime, given its borrowing and lending structure.
The DeltaPrime team responded promptly by informing users via Discord and X (formerly Twitter), acknowledging the issue and assuring the community that they were working on a resolution.
“The risk is contained, we’re working on asset-retrieval and the insurance pool will cover any potential losses where possible / necessary,” said the team in the X post, adding “Additionally, we’re looking into other ways to reduce user losses to a minimum.”
This incident marks the second significant breach for DeltaPrime in recent months. In July 2024, the protocol suffered a $1 million hack due to a misconfiguration, which allowed an attacker to take over accounts, repay loans, and withdraw collateral.
Following the previous exploit of July, DeltaPrime team had re-audited its codebase and assured users that vulnerabilities had been patched. However, the recurrence of another major breach raises concerns about the platform’s security measures.
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