- Hackers took control of DeltaPrime’s proxy contracts to drain multiple liquidity pools.
- Stolen USDC tokens were converted to Ethereum, making recovery difficult.
- DeltaPrime’s future is now uncertain as the breach continues and user trust is at risk.
DeltaPrime, a decentralised finance (DeFi) protocol on the Arbitrum blockchain, has suffered a important breach. Online criminals exploited vulnerabilities to drain multiple liquidity pools, with losses now totalling $5.93 million. CyVers, a Web3 security firm, reported that the attackers gained access to DeltaPrime's admin wallet, which has raised concerns within the DeFi community.
Attackers Drain Liquidity Pools Using Proxy Contracts
The culprits targeted DeltaPrime by taking control of the protocol's proxy contracts, which allowed them to syphon funds from important flexibility pools like DPUSDC, DPARB, and DPBTCb. The initial loss was estimated at $4.5 million, but it has since escalated to $5.93 million as the attack continues.
The perpetrators upgraded the contracts to redirect funds to malicious agreements, which enabled them to drain assets efficiently. The attack remains active while the operators continue to exploit the compromised system.
Possible North Korean Links Make Recovery Difficult
CyVers suggested that the thieves might be connected to North Korean IT workers. The vandalised USDC tokens were reportedly converted into Ethereum, which complicates efforts to recover the funds. The quick conversion of assets shows an attempt to secure liquidity or hide the stolen funds’ trail.
The potential link to North Korean operatives, though unconfirmed, adds another layer to the investigation. This possibility raises concerns about state-sponsored actors being involved in DeFi hacks, which could impact the entire industry.
DeltaPrime’s Future Uncertain Amid Crisis
The company’s operations are uncertain due to the ongoing breach. The protocol, which is working on both the Arbitrum and Avalanche blockchains, had established itself in the DeFi space, but the severity of this breach puts its ability to recover and maintain user trust in doubt.
The DeFi community is now questioning if DeltaPrime can survive this ordeal and restore confidence in its platform. The outcome of this attack could set a precedent for handling similar incidents in the future, especially regarding asset recovery and accountability.
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