DeltaPrime Protocol Exploited for $4.8 Million in ARB and AVAX Tokens
The DeltaPrime protocol, a decentralized finance (DeFi) liquidity platform, has fallen victim to a major security breach, losing approximately $4.8 million worth of Arbitrum (ARB) and Avalanche (AVAX) tokens. This latest exploit highlights the rising trend in cryptocurrency hacks during 2024, suggesting the total value stolen this year could surpass the losses seen in 2023.
Details of the DeltaPrime Exploit
According to on-chain analysis by security firm PeckShield, the exploit involved the attacker adding liquidity to DeltaPrime before launching the attack. In a post on November 11, PeckShield detailed:
“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.”
In response to the exploit, the DeltaPrime team announced on November 11 that it had paused its operations on both the Arbitrum and Avalanche networks to prevent further damage and secure user funds.
Crypto Hacks on the Rise in 2024
The DeltaPrime incident is part of a troubling trend in the crypto industry. Security breaches are on the rise in 2024, with centralized exchange M2 recently losing $13.7 million in a separate hack on November 1. With nearly $2 billion stolen so far this year, the cumulative value of assets lost to hacks could potentially outpace 2023.
2024 Hacking Statistics: A Record-Breaking Year?
In the third quarter of 2024 alone, hackers stole over $753 million across 155 incidents, marking a 9.5% increase in total stolen value compared to previous quarters. Key statistics include:
- Total Assets Stolen in Q1 2024: $542.7 million, representing a 42% increase over Q1 2023.
- Total Incidents in Q3 2024: 155 separate incidents.
- Estimated Losses to Date in 2024: Nearly $2 billion.
Shifting Attack Vectors in the Crypto Industry
Traditionally, vulnerabilities in smart contracts were the primary focus of crypto exploits. However, Mriganka Pattnaik, co-founder and CEO of Merkle Science, has noted a shift in tactics among hackers. According to Pattnaik:
“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.”
This change in attack strategy was illustrated in May, when a phishing attack resulted in a trader losing $71 million worth of crypto. The attacker managed to convince the trader to send 99% of their funds to the hacker’s address, making it one of the highest-profile phishing incidents of the year.
DeltaPrime’s Breach Among Other Major 2024 Incidents
The DeltaPrime breach comes only four months after the second-largest hack of 2024, where over $230 million was stolen from the Indian cryptocurrency exchange WazirX. These repeated security breaches underscore the ongoing challenges in securing DeFi protocols and centralized exchanges alike.
The cryptocurrency industry faces mounting pressure to enhance security measures as it contends with increasingly sophisticated hacking techniques. As 2024 progresses, the industry and its users must stay vigilant against both emerging and evolving threats.
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