Delta Prime (2024) — Crypto Hack
LaunderedDelta Prime, an Arbitrum-based lending protocol, was exploited for ~$6M after attackers compromised a private key and upgraded the protocol's proxy contracts to malicious implementations.
Summary
Delta Prime, an Arbitrum-based lending protocol, was exploited for ~$6M after attackers compromised a private key and upgraded the protocol's proxy contracts to malicious implementations.
How It Was Compromised — DeFi via Private Key Compromise / Proxy Upgrade
On September 16, 2024, Delta Prime, an Arbitrum-based lending and borrowing protocol, was exploited for approximately $6M. The attacker compromised a private key that held administrative privileges over the protocol's proxy contracts. Using this key, the attacker upgraded the proxy implementations to malicious contracts that allowed them to drain the protocol's lending pools. The exploit was executed across multiple transactions and affected several of the protocol's supported assets. Delta Prime paused the protocol and engaged with blockchain analytics firms to track the stolen funds.
Fund Flow & Laundering Analysis
Stolen tokens were swapped to ETH and stablecoins via decentralized exchanges on Arbitrum. The funds were then bridged to Ethereum mainnet and deposited into Tornado Cash. The attacker used a complex network of intermediary wallets to fragment the laundering trail. Delta Prime offered a bounty for the return of the funds.