DeltaPrime Suffers $6M Exploit Amid North Korea Link Allegations

By: Isha Das

DeFi protocol DeltaPrime has fallen victim to a significant exploit, resulting in a $6 million loss, according to blockchain security firm Cyvers. This latest breach was detected on September 16, when Cyvers noted the incident was caused by a compromised admin key. Cyvers' CTO, Meir Dolev, explained that the hacker gained control of the admin wallet for DeltaPrime's proxy contracts. This access allowed the malicious actor to upgrade these contracts, ultimately enabling them to drain DeltaPrime's liquidity pools on the Arbitrum chain. Moreover, Cyvers revealed that the attacker began converting the stolen assets into Ethereum.

DeltaPrime's team has yet to issue any public statements regarding the incident. This breach follows closely on the heels of another attack just two months prior. In July, the protocol experienced a $1 million hack due to a misconfiguration that allowed the attacker to take ownership of multiple Prime Accounts. The attacker transferred ownership, repaid loans, and withdrew collateral, resulting in the significant loss. Following that hack, DeltaPrime had announced measures to re-audit its code and compensate users, recovering $900,000 from the attacker and adding $100,000 from its stability pool.

There are additional complications linked to DeltaPrime's latest security breach. On-chain investigator, ZachXBT, highlighted that DeltaPrime previously employed IT workers from North Korea, a country sanctioned for its involvement in cryptocurrency-related cybercrimes. Although the DeFi platform claimed to have terminated these individuals earlier this year, the precise connection between the current hack and North Korean operatives remains uncertain. Such actors have historically infiltrated crypto firms to gain insider information, subsequently launching targeted exploits.

North Korean hackers have a notorious track record, linked to numerous high-profile crypto heists. These include the significant $235 million WazirX breach and the $20 million exploit at the Indodax exchange. Given this background, the allegations casting a shadow over DeltaPrime's recent loss add a layer of complexity to the unfolding situation.