The post Delta Prime Loses $5.9M in Arbitrum Hack: Hacker Exploits Admin Wallet appeared on BitcoinEthereumNews.com.

Delta Prime, a decentralized finance (DeFi) platform, recently suffered a significant security breach, resulting in a loss of over $5.9 million. The incident involved a hacker taking control of a private key, leading to unauthorized access and manipulation of Delta Prime’s contracts. Meir Dolev, CTO of Cyvers, revealed that the hacker upgraded the contracts to a malicious version, subsequently draining multiple pools on the Arbitrum chain. A major security incident has disrupted DeFi platform Delta Prime, with a hacker exploiting vulnerabilities to steal over $5.9 million. Delta Prime Security Breach: A Detailed Analysis On September 16, 2023, Delta Prime faced a severe cybersecurity incident where a hacker gained access to a private key, which allowed them to control a key administrative wallet. This wallet was responsible for managing Delta Prime’s proxy contracts. The attacker took advantage of this access, deploying upgraded, malicious contracts that siphoned funds from the platform’s liquidity pools on the Arbitrum blockchain. According to Cyvers, over $5.9 million were drained, impacting at least three identified pools. The alert issued by Cyvers suggested that the full extent of the damage was still being assessed. Understanding the Attack Mechanism Diving deeper into the attack mechanics, the hacker’s first step was to assume control of an administrative wallet associated with Delta Prime. This wallet’s privileged status allowed the perpetrator to redirect the contract’s pointers to malicious ones they controlled. Once the contracts were in place, they systematically emptied the funds from the DeFi platform. This method highlights the vulnerabilities in the security protocols governing private keys and administrative controls within decentralized finance ecosystems, emphasizing the need for heightened security measures and more robust encryption protocols to safeguard against such sophisticated attacks. Impact on the DeFi Community The ramifications of this security breach extend beyond Delta Prime, echoing throughout the DeFi…

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Filed under: News - @ September 16, 2024 4:19 pm