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Delta Prime, a blockchain-based lending platform, has suffered its second significant hack in two months. The recent breach led to almost $5 million in crypto theft.
This recent attack brings Delta Prime’s total losses to over $10 million. This incident has raised critical concerns about security measures and huge financial losses across DeFi platforms and the crypto space.
Bad Actors Exploited A Code Flaw on Delta Prime
Crypto security firm Fuzzland identified a code logic error in Delta Prime’s “claimRewards” contract as the cause of the recent attack.
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This contract, which was responsible for managing user token payouts, failed to verify critical addresses within the “claimRewards” function. The attacker exploited this flaw, inserting a custom contract address to manipulate reward amounts, leading to large-scale theft.
After the attack, Delta Prime quickly announced it was pausing operations on Avalanche and Arbitrum to contain the damage. The pause aims to protect assets within the protocol, with Delta Prime assuring users that the risk has been controlled. The platform promised swift updates on the situation through its website and social media.
No Connection Between Attacks, but Security Concerns Linger
While the first attack stemmed from stolen private keys, this recent one involved a publicly accessible bug that anyone could have theoretically exploited.
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Publicqi, a researcher from Fuzzland, emphasized that DeFi protocols handling large funds should meticulously check code handling asset transfers. Also, Publicqi cautioned that audits alone cannot ensure complete security.
According to DeFi research group Yieldsandmore, the attacker appeared to be a well-versed DeFi user with a history of exploiting vulnerabilities.
Some stolen assets were reportedly reinvested in wrapped Bitcoin on Arbitrum, suggesting a sophisticated understanding of blockchain transactions.
Delta Prime’s Financial Standing Plummets
The double attack has caused a sharp decline in Delta Prime’s financial standing. The platform’s native token PRIME, once valued at over $51 million, and its Total Value Locked (TVL) have both suffered considerable declines.
Delta Prime’s TVL is around $32 million, down by more than half from its peak before a $6 million hack in September. This record signals a challenging period for the protocol’s stability and investor confidence.
This incident underscores the need for strengthened security practices as hackers continue targeting decentralized finance (DeFi) protocol vulnerabilities.
