DeltaPrime, a decentralized borrowing protocol, has reportedly suffered a significant hack, resulting in a multi-million dollar loss. The incident is suspected to involve entities linked to North Korea.

DeltaPrime (PRIME), supported by Avalanche and GSR Markets, experienced a $4 million breach due to an admin private key leak. This was disclosed by Fuzzland co-founder Chaofan Shou in a post dated September 16.

DeltaPrime admin private key leaked. All pools are drained. $7M loss already. Withdraw ASAP!

While the exact details of the private key breach are still unclear, blockchain investigator ZachXBT noted that DeltaPrime had previously employed North Korean IT workers. However, all flagged personnel had been removed prior to the incident, leaving unresolved questions about any connection between the hack and North Korea.

Researchers at Cyvers Alerts indicated in a post that the hack targeted the protocol’s version on Arbitrum. The hacker has already exchanged the stolen USD Coin (USDC) for Ethereum (ETH).

“It seems that admin has lost the private key. Suspicious address still draining the pools! Affected pools so far are the DPUSDC, DPARB, DPBTCb!”

Besides Arbitrum, DeltaPrime also operates a protocol on the Avalanche network. However, there have been no reports indicating that this protocol is also vulnerable. Following the hack, DeltaPrime’s native token PRIME fell 6% to $1. As of the latest update, the DeltaPrime team has not made any public statements regarding the breach.

Launched on the Avalanche network in January 2023, DeltaPrime has attracted over $63 million in total value locked and unlocked more than $20 million in liquidity. The protocol has secured funding from Avalanche, GSR Capital, Moonhill Capital, and Uplift, among others.

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