Renowned decentralized finance platform, Delta Prime has suffered a security breach that claimed up to $5.98 million worth of digital assets. News about the hack surfaced on Monday through a post on X by leading blockchain analytical firm, Cyvers.
According to Cyvers, the hacker compromised the private keys of the Arbitrum-based protocol, draining its pool. As revealed, the attacker stole about $5.98 million from the platform, converting some of them to ETH.
How Delta Prime Reacted to the Attack
However, Delta Prime has confirmed the attack in an official statement on its page on X. The protocol communicated that only its DeltaPrime Blue which is based on Arbitrum suffered the breach.
Additionally, Delta Prime stated that the attackers managed to steal the funds after compromising its private key. The protocol revealed that it is currently investigating the source of the attack.
In the statement, the firm established that the exploit didn’t affect DeltaPrime Red. Delta Prime indicated that it is working on how to reclaim the stolen funds.
The project team went on to assure users that the situation is under control as its insurance pool would cover any loss if the need be.
Growing Cyber Security Concerns Among Crypto Enthusiasts
Meanwhile, the recent attack on Delta Prime further intensified concerns over the increasing security breaches in the crypto landscape. Lately, hackers have targeted cryptocurrency exchanges, stealing millions of users’ deposits.
Recently, centralized finance systems within the crypto market has suffered the most. Centralized exchanges like Rain, Indodax, and WazirX have all been exploited by bad actors.
As of August, hackers have stolen up to $1.2 billion from the cryptocurrency space in 2024 as per ImmuneFi. As revealed, the figure represents a 15% increase compared to what the digital asset market lost to bad actors in the same period in 2023.
More so, ImmuneFi indicated that the cryptocurrency space has witnessed about 154 cases of security breaches within 2024 alone. By that, there are growing indications that the crypto market may suffer more attacks in 2024 compared to 2023.
The increasing attacks across the crypto landscape have further raised questions about the effectiveness of the existing security setup in the industry to protect the huge influx of investment it has recorded lately.
Similarly, the concern is centered around how cryptocurrency is enjoying widespread adoption, most prominently there is an exodus of investors from the traditional finance sphere.
Also, experts opined that hackers may turn their attention to spot Bitcoin exchange-traded funds due to the huge amount of investment they hold. At the moment, market data by Dunne revealed that BTC ETFs hold more than $53.4 billion worth of Bitcoins on-chain.
Read More: