DeltaPrime DeFi been hit by a severe security breach impacting its operations on the Arbitrum and Avalanche blockchains.
This latest exploit has led to a financial loss of approximately $4.8 million. In response, DeltaPrime has paused affected pools and is conducting a detailed investigation into the incident.
ALERT
The team has halted all protocols across multiple chains in response.Estimated Loss: $4.7M
This is the second incident for the DeFi protocol, following a… https://t.co/D9IydZj8cb
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The vulnerability was exploited through a lack of input validation during the process of claiming rewards. Specifically, the attacker manipulated the system by introducing a malicious pairing that allowed them to substitute the collateral asset with a reward asset. By changing the collateral into a reward, they were able to withdraw the initial funds used as collateral, effectively leaving the debt unpaid.
Exploiters Makes Strategic MovesÂ
In addition to this exploit, it appears the attacker has strategically invested $1.3 million into liquidity for LFJ (formerly known as Trader Joe) and utilized the Stargate protocol to farm USDC tokens, likely to further monetize the stolen funds.
Today’s @DeltaPrimeDefi exploit leads to $4.8m loss. Since affected pools are now paused, we share our initial analysis below.
The exploit is made possible due to the lack of input validation in claiming possible rewards. Specifically, the exploiter provides an evil pair in… https://t.co/PH0yk9G3kP pic.twitter.com/upJVlJcVrL
— PeckShield Inc. (@peckshield) November 11, 2024
This is the second attack DeltaPrime has endured this year, following a similar security breach in September 2024 that resulted in a $6 million loss. In that incident, it was reported that the protocol’s admin lost access to a critical private key, which enabled unauthorized access to several key liquidity pools, including DPUSDC, DPARB, and DPBTCb, leading to significant drainage.
The team has halted all protocols across multiple chains in response.Estimated Loss: $4.7M
This is the second incident for the DeFi protocol, following a… https://t.co/D9IydZj8cb
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DeltaPrime’s team has assured users that they are working diligently to analyze and address the issue to prevent future incidents. However, this recent breach has raised serious concerns regarding the protocol’s security measures and reliability in safeguarding user assets.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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