Decentralized Finance (DeFi) platform Delta Primes suffered a security breach on Monday, affecting the protocol’s users. The attack took $6 million from the project’s pools and is under investigation. However, on-chain investigators suspect it could be linked to North Korean hackers and be part of a larger-scale scheme.
On Monday morning, cyber security platform Cyvers Alerts the community about the ongoing attack on DeFi borrowing protocol Delta Primes. The initial report revealed that Cyvers’ system had detected multiple suspicious transactions involving the project on the Arbitrum chain.
The transactions suggested the DeFi protocol’s team had lost the private key, initially losing $4.5 million from the DPUSDC, DPARB, and DPBTCb pools. The suspicious draining address immediately swapped the USDC for Ethereum (ETH).
In the next hour, Cyvers detailed that the attackers had seemingly changed the proxy, pointing to a malicious address. Other reports explained that “this malicious contract can inflate the deposited amount of the hacker on all pools.”
The attackers drained another $1.48 million from the pools before Delta Prime’s team regained control. Two hours after the initial reports, the DeFi platform the incident.
Per the post, DeltaPrime Blue, on the Arbritum chain, was attacked and drained for $5.98 million. The team confirmed that the attack was due to a compromised private key, with the cause still being investigated.
Delta Prime’s team also assured users that DetalPrime Red, on Avalanche, was safe from this attack, detailing that the “implementation here is covered solely by multisigs and cold wallets (as it should be).”
Additionally, the post claimed that the risk was already contained, reassuring its community that the DeFi protocol’s insurance pool would cover potential losses:
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.
Are North Korean Hackers Responsible?
Despite the quick response, some users expressed their concerns about the incident. When questioned about it, the team that there were no timelocks for DeltaPrime Blue:
This is exactly what timelocks are for. The switch from this hot & non-timelocked owner to a cold timelocked owner should have been done on Arbitrum like it was on Avalanche (and like other initial owners on Arbi)
One community member criticized the team for not having the same security measures on DeltaPrime Blue and Red, stating there was no excuse for the mistake. Moreover, on-chain sleuth ZachXBT that the attack could be linked to a larger-scale problem.
A month ago, Zach assisted another team with another crypto hack. The investigation unveiled that over 25 projects within the space had unknowingly hired multiple IT workers from North Korea using fake identities as developers.
Today, the crypto detective revealed that the DeFi protocol was among the teams he alerted about the North Korean IT workers in August. He also noted that the method used for Delta Prime’s exploit was similar to the hack he originally assisted.
As of this writing, Delta Prime’s team has not addressed the possible link. However, it stated that they would focus on getting the funds back and that “the event isn’t over yet.”
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Rubmar is a writer and translator who has been a crypto enthusiast for the past four years. Her goal as a writer is to create informative, complete, and easily understandable pieces accessible to those entering the crypto space. After learning about cryptocurrencies in 2019, Rubmar became curious about the world of possibilities the industry offered, quickly learning that financial freedom was at the palm of her hand with the developing technology.
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From a young age, Rubmar was curious about how languages work, finding special interest in wordplay and the peculiarities of dialects. Her curiosity grew as she became an avid reader in her teenage years. She explored freedom and new words through her favorite books, which shaped her view of the world. Rubmar acquired the necessary skills for in-depth research and analytical thinking at university, where she studied Literature and Linguistics. Her studies have given her a sharp perspective on several topics and allowed her to turn every stone in her investigations.
In 2019, she first dipped her toes in the crypto industry when a friend introduced her to Bitcoin and cryptocurrencies, but it wasn’t until 2020 that she started to dive into the depth of the industry. As Rubmar began to understand the mechanics of the crypto sphere, she saw a new world yet to be explored.
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In her free time, she usually finds joy in different art forms. As a child, she enlisted in every extra-curricular activity in her hometown, including music classes, dancing, jewelry making, and the local chorus. Despite her many attempts to learn different instruments, Rubmar only knows how to play the xylophone, which she played for 7 years in her school’s marching band.
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In summary, Rubmar seeks to present entertaining and educational pieces to be enjoyed by everybody, aiming to report on the latest news and offer a unique perspective while adding a meme or a pun whenever possible.
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