DeltaPrime Hack Shakes DeFi Industry: $4.8 Million Lost to Exploit

The post DeltaPrime Hack Shakes DeFi Industry: $4.8 Million Lost to Exploit appeared first on Coinpedia Fintech News

In a recent attack, a lending DeFi protocol, DeltaPrime has lost over $4.8 million through an exploit covering Arbitrum (ARB) and Avalanche (AVAX). This attack is the second major hack on DeltaPrime within the last two months and underlines the continuous security issues within the protocol and the DeFi industry in general.

The hack was first reported by the on-chain security firm PeckShield which said that the attacker modified DeltaPrime’s “claimRewards” contract. This weakness enabled the offender to commit fraudulent activities and obtain funds of about $4.8 million using a code logic exploitation that effectively circumvented important security controls. 

From the firm’s perspective, the attacker deposited $1.3 million to LFJ (previously Trader Joe) and invested in farming $USDC on the Stargate protocol. To manage the breach DeltaPrime revealed a halt in its activities on Arbitrum and Avalanche networks. 

The protocol’s team claimed that while the protocol is paused on both chains, the risk is contained to reassure stakeholders that they are currently looking into it.

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September Hack and Vulnerability Risks of Deltaprime

The earlier one is a mid-September incident when the protocol lost $6 million because an administrator’s private keys were leaked. This attack marks the second significant breach of DeltaPrime in the past two months, which highlights the ongoing security vulnerabilities within the protocol and the wider DeFi world.

Crypto security specialists have recently criticized the unprotected status of most DeFi protocols by stating that the claimRewards contract vulnerability, which enabled illicit fund transfers, could have been fixed with proper code audits and checks. 

Security researchers have said that security audits rather present a set of options which, when used correctly, minimizes the risks For DeFi protocols handling significant funds, however, a code audit does not guarantee absolute safety.