Originally published on: November 11, 2024
A recent breach at the DeltaPrime decentralized finance (DeFi) liquidity protocol has led to a staggering loss of $4.8 million worth of ArbitrumARB and AvalancheAVAX tokens. This incident adds to the growing list of crypto hacks in 2024, raising concerns that this year’s losses may exceed those of 2023.
The exploit, currently under investigation, began when the attacker injected liquidity into the protocol, as revealed by onchain intelligence firm PeckShield. Following this breach, DeltaPrime took swift action by halting the protocol on both the Arbitrum and Avalanche blockchains.
This breach highlights the ongoing security challenges faced by the crypto industry. Just earlier this month, centralized exchange M2 fell victim to a hack resulting in a loss of $13.7 million in digital assets. With hackers draining over $753 million in 155 incidents during the third quarter of 2024, the total stolen value surged by approximately 9.5%.
Despite the common belief that smart contracts are usually the root cause of these breaches, Mriganka Pattnaik, co-founder and CEO of crypto risk and intelligence platform Merkle Science, pointed out that this is no longer the case.
This incident at DeltaPrime follows a similar breach earlier this year where a hacker pilfered over $230 million from WazirX, one of India’s leading cryptocurrency exchanges, marking it as the second-largest cryptocurrency hack of 2024.
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