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The DeFi liquidity protocol has already paused operations on Arbitrum and Avalanche blockchains as the team investigates the vulnerability.
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The DeltaPrime protocol has been exploited for $4.8 million worth of digital assets, adding to the growing number of crypto hacks in 2024, which could be set to surpass the value stolen in 2023.
DeltaPrime, a decentralized finance (DeFi) liquidity protocol, was exploited for $4.8 million worth of Arbitrum (ARB) and Avalanche (AVAX) tokens.
The hack, still under investigation, began when the exploiter contributed liquidity to the protocol, according to onchain intelligence firm PeckShield. In a Nov. 11 post on X, PeckShield said:
“DeltaPrime has been exploited for ~$4.8M worth of crypto on both #ARB & #AVAX. The exploiter has added liquidity (~$1.3M) to LFJ (formerly Trader Joe) & farmed $USDC on Stargate.”
DeltaPrime exploit. Source: PeckShield
In response, the DeltaPrime team announced on Nov. 11 that it had paused the protocol on both the Arbitrum and Avalanche blockchains.
Incident response. Source: DeltaPrime
The exploit adds to the growing concerns over security in the crypto industry. On Nov. 1, centralized exchange M2 was hacked for $13.7 million worth of digital assets, Cointelegraph reported.
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Will 2024 crypto hacks top 2023?
In a concerning sign for the Web3 industry, crypto hackers stole over $753 million across 155 incidents during the third quarter of 2024, as the total stolen value surged by approximately 9.5%.
In 2024 to date, hackers have stolen nearly $2 billion. This could mean that crypto hacks this year could potentially top 2023, with the first quarter of 2024 seeing $542.7 million worth of stolen funds, a 42% increase compared to the same period in 2023.
However, smart contracts are no longer to blame for most exploits, according to Mriganka Pattnaik, co-founder and CEO of crypto risk and intelligence platform Merkle Science, who told Cointelegraph:
“While smart contract vulnerabilities remain a concern, hackers increasingly target areas outside smart contracts, like private key leaks. These leaks, often due to phishing attacks or insecure storage practices, have led to significant losses.”
Related: Chinese trader laundered more than $17M for Lazarus Group in 25 hacks
In May, a trader lost $71 million worth of crypto in the year’s most high-profile phishing attack. The attacker tricked the trader into sending 99% of their funds to the attacker’s address.
DeltaPrime’s current incident occurred four months after a hacker stole over $230 million from WazirX, an Indian cryptocurrency exchange, in the second-largest cryptocurrency hack of 2024 so far.
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This article first appeared at Cointelegraph.com News
