A massive breach abused DeltaPrime, a decentralized finance (DeFi) technology, resulting in the theft of $4.8 million in ARB and AVAX tokens. The attack targeted the protocol’s operations on the Arbitrum and Avalanche networks, prompting DeltaPrime to briefly cease activity on both blockchains while it investigated the problem.
Blockchain security firm PeckShield initially noticed the attack, revealing that the exploiter exploited a vulnerability in DeltaPrime’s infrastructure to drain significant liquidity. The attacker allegedly moved $1.3 million of the stolen assets to a decentralized finance platform for liquidity provisioning and farming using a different protocol, making recovery difficult.
This incident contributes to a disturbing trend of cryptocurrency attacks in 2024, as fraudsters increasingly target digital asset marketplaces. So far, the stolen amount has raised concerns about DeFi security, particularly given this is DeltaPrime’s second hack of the year. A similar hack a few months before resulted in a $6 million loss, calling DeltaPrime’s security safeguards into question and eroding investor trust.
DeltaPrime’s quick response to this recent attack included suspending operations on targeted networks to prevent further damage. The team promised consumers on social media that they are actively studying the issue and developing solutions to prevent future accidents.
This latest theft has fueled calls for stronger security protocols in the DeFi market, where recent attacks have resulted in billions in damages. As DeltaPrime recovers from the attack, it is under increasing pressure to tighten its security system in order to regain the trust of its consumers and stakeholders.
