DeltaPrime, Avalanche-backed, Hit by $4.5M Hack

North Korean entities are suspected of hacking DeltaPrime, a decentralized borrowing protocol, for millions

DeltaPrime, a decentralized borrowing protocol that Avalanche and GSR Markets support, was the victim of a $4 million breach caused by a leak of the admin private key, according to a post by fuzz land co-founder Chaofan Shou on X on September 16.

DeltaPrime had previously employed North Korean IT workers, as noted by blockchain investigator ZachXBT, even though the precise circumstances surrounding the private critical breach remain obscure.

Nevertheless, the analyst underscored that all personnel who had been flagged had been removed, leaving no concerns regarding a potential connection between the hack and North Korea unresolved.

In an X post, blockchain researchers at Cyvers Alerts noted that the hack targeted the protocol’s version that was pushed out on Arbitrum. They also stated that the hacker had already transferred the stolen USD Coin (USDC) to Ethereum (ETH).

DeltaPrime has also launched a protocol on the Avalanche network in addition to Arbitrum. However, there have been no reports regarding the vulnerability of this protocol to attacks.

DeltaPrime’s native token, PRIME, experienced a 6% decline to $1 after the breach. The DeltaPrime team has not issued any public statements regarding the matter.

The DeltaPrime protocol initially introduced on the Avalanche network in January 2023, has attracted over $63 million in total value secured and unlocked more than $20 million in liquidity, according to the protocol’s official website.

The protocol received funding from various sources, including Avalanche, GSR Capital, Moonhill Capital, and Uplift.