The number of cryptocurrency hacks is on the rise in 2024, with the DeltaPrime protocol exploited to steal $4.8 million worth of digital assets, which could surpass the value stolen in 2023.
DeltaPrime, a decentralized finance (DeFi) liquidity protocol, has been leveraged for $4.8 million worth of Arbitrum (ARB) and Avalanche (AVAX) tokens.
According to on-chain intelligence firm PeckShield, the hack, which is still under investigation, began when the attackers provided liquidity to the protocol. In X’s November 11 post, PeckShield said:
“DeltaPrime was exploited with ~$4.8M worth of cryptocurrency from both #ARB and #AVAX. Exploiter added liquidity (~$1.3M) to LFJ (formerly Trader Joe’s) and acquired $USDC from Stargate.”
DeltaPrime exploit. Source: PeckShield
In response, the DeltaPrime team announced on November 11 that it had suspended the protocol on both the Arbitrum and Avalanche blockchains.
Incident response. source: Delta Prime
This exploit further amplifies security concerns in the cryptocurrency industry. On November 1, centralized exchange M2 was hacked, stealing $13.7 million worth of digital assets, Cointelegraph reported.
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Will cryptocurrency hacking in 2024 surpass 2023?
In a worrying sign for the Web3 industry, cryptocurrency hackers stole more than $753 million in 155 incidents during the third quarter of 2024, with total stolen value increasing by about 9.5%.
As of 2024, hackers have stolen nearly $2 billion. This could mean that cryptocurrency hacks this year could potentially surpass 2023, with $542.7 million worth of stolen funds in the first quarter of 2024, a 42% increase compared to the same period in 2023.
But smart contracts are no longer responsible for most abuses, according to Mriganka Pattnaik, co-founder and CEO of cryptocurrency risk and intelligence platform Merkle Science. He told Cointelegraph:
“While smart contract vulnerabilities remain a concern, hackers are increasingly targeting areas outside of smart contracts, such as private key leaks. “If such a breach occurs due to a phishing attack or insecure storage practices, significant losses are incurred.”
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Last May, a trader lost $71 million worth of cryptocurrency in one of the most high-profile phishing attacks of the year. The attacker tricked the trader into sending 99% of his funds to the attacker’s address.
The DeltaPrime incident is the second largest cryptocurrency hack of 2024 so far and comes four months after hackers stole more than $230 million from Indian cryptocurrency exchange WazirX.
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