Decentralized finance (DeFi) platform Delta Prime recently suffered a major cyberattack, resulting in the loss of at least $6 million in digital currency.
According to X postal Provided by Cyvers, an on-chain security platform, Delta Prime first lost about $4.5 million in crypto assetsSubsequently, several more suspicious transactions occurred, with a total loss of US$6 million.
Private key vulnerability leads to $6 million Delta Prime hack, highlighting DeFi security gap
According to Cyvers, the hackers have converted the stolen USDC (USD Coin) into Ethereum (ETH).
At the time of writing, Cyvers warned that total losses could rise as suspicious addresses associated with the The attack continues to siphon funds from the platform’s liquidity pools.
Delta Prime’s woes quickly escalate as another series of malicious transactions emerges Initial losses of approximately $4.5 millionSo far, hackers have stolen nearly $6 million from the protocol. Chaofan Shou, co-founder of blockchain security company Fuzzland, wrote in a post X Posts.
$6 million now exhausted;
— Chaofan Shou (@shoucccc) September 16, 2024
The attack on Delta Prime is part of a pattern of high-profile cryptocurrency hacks, which comes just two months after a major attack on WazirX, a prominent Indian cryptocurrency exchange, saw hackers steal more than $230 million.
The WazirX hack currently ranks as the second-largest cryptocurrency theft in 2024. The recurring nature of these incidents highlights the growing threats within the crypto ecosystem.
Cyvers CTO Meir Dolev said the Delta Prime data breach may have originated from Private key vulnerabilitySuch vulnerabilities typically involve unauthorized access to private keys necessary to control wallets and smart contracts.
🚨Alert🚨@DeltaPrimeDefi Its management key suffered a security incident.
The attacker controls the private key of 0xx40e4ff9e018462ce71fa34abdfa27b8c5e2b1afb
Then he upgraded his agent!So far, $5.93 million has been spent!
Want to keep your company off our alert radar? Find out… https://t.co/yOmNZJyp5l pic.twitter.com/7QJfVUZqSU
— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) September 16, 2024
In the case of Delta Prime, hackers took control of a wallet that served as an administrator for the protocol’s proxy contract. After gaining access, the attacker executed Malicious contract upgrade. They reprogrammed the platform’s contracts to redirect to their fraudulent contracts.
In this way, the hacker was able to drain Delta Prime’s liquidity pools, which are hosted on the Arbitrum blockchain, a popular layer 2 scaling solution for Ethereum.
Delta Prime’s losses totaled $5.9 million. Hacking may continue, potential losses are imminent.
In an interview with Cointelegraph, Dolev outlined how the breach highlights the growing vulnerabilities of decentralized finance (DeFi) platforms. He focused more on contract security and private key management.
In this case, manipulating the proxy contract allowed the hacker to bypass conventional security mechanisms. Inherent risks when developers fail to ensure smart contracts are secure Properly defend against ongoing malicious upgrades.
The FBI warned that North Korean hackers are targeting the $53 billion Bitcoin ETF as their next target.
There are growing concerns that North Korean hackers, particularly the notorious Lazarus Group, may soon target high-profile financial products such as U.S. bitcoin ETFs.
These ETFs Holding large reserves Bitcoin is a lucrative target for cybercriminals. A successful hack could generate huge gains for the bad guys.
Michael Pearl, vice president of strategy at Cyvers GTM, expressed these concerns in an exclusive interview with Cointelegraph. According to Pearl, North Korean hacker groups are turning their focus to Bitcoin ETFs May Be Driven by Potential for Massive Financial Returns.
Pearl also mentioned the recent FBI warninghighlighting the growing likelihood that North Korean hackers are attempting to infiltrate and steal these Bitcoin ETFs.
He explained that Bitcoin ETFs store large amounts of cryptocurrency in custodial wallets. While these wallets are usually very secure, Hackers are also finding ways to circumvent these defenses.
according to Data from DuneTogether, these ETFs hold approximately $53.4 billion worth of Bitcoin on-chain. This huge value is therefore extremely attractive to cybercriminals. Especially as they explore more complex methods.
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
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