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.”
In response, the DeltaPrime team announced on November 11 that it had suspended the protocol on both the Arbitrum and Avalanche blockchains.
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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