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DeltaPrime Blue On Arbitrum Hacked, $5.98M Drained Due To Compromised Private Key

In the early hours of the morning (6:14 AM CET), DeltaPrime Blue on Arbitrum was the victim of a significant security breach, resulting in the theft of $5.98 million.

The hack was made possible due to a compromised private key, though the exact source of the breach is still under investigation.

Thankfully, DeltaPrime Red on Avalanche remains unaffected, as its implementation relies solely on multisignature wallets and cold storage, offering more robust protection. The DeltaPrime team has assured the community that the risk has been contained, and they are actively collaborating with @DeltaPrimeDefi to investigate the attack and recover the stolen assets.

The attack primarily targeted DeltaPrime’s liquidity pools, including #DPUSDC, #DPARB, #DPWETH, and #DPBTCb, all of which were drained. Initial estimates placed the loss at $4.5 million, but updated calculations now confirm the figure at $5.98 million.

Hacker Converts USDC Into ETH

The hacker swiftly converted the stolen USDC into ETH to circumvent any potential freezing of USDC assets. Hours later, the attacker transferred 1.2K ETH (valued at $2.8 million) to a new address, further complicating the asset recovery process.

The attack was made possible when the hacker gained control of the admin’s private key, which allowed them to upgrade DeltaPrime’s contracts to malicious versions, giving them full control over the pools.

DeltaPrime has acknowledged the breach, confirming the $5.93 million loss on their DeltaPrime Blue platform. The team remains focused on retrieving the stolen funds and continues to share updates as more information becomes available.

Disclosure: This is not trading or investment advice. Always do your research before buying any Metaverse crypto coins.