As 2023 drew to a close, the cryptocurrency sector was rocked by a significant security breach involving Orbit Chain, a cross-chain project. On New Year's Eve, Orbit Chain's bridging service, Orbit Bridge, fell victim to a cyber heist, leading to an estimated loss of around $81.7 million. This incident not only caused a stir in the cryptocurrency community but also led to a notable drop in the price of Orbit Chain's native token, ORC, by nearly 20%, trading at $0.057.
The exploit was first flagged by an anonymous Twitter user, followed by confirmations from blockchain sleuth Officer CIA and cybersecurity firm Cyvers. These developments pointed to substantial outflows from the Orbit Chain Bridge protocol, signifying a major security compromise. According to Web3 security experts, the hackers managed to gain access to seven out of the ten multisig signers, a key security feature of the protocol.
The hackers meticulously executed the operation, initiating with a 10 $ETH transfer from TornadoCash, a currency-mixing service known for its use by cybercriminals. The funds were then distributed through five separate transactions to fresh wallets, comprising 30 million USDT, 10 million USDC, 10 million DAI, 230.879 Wrapped Bitcoin (WBTC) worth $9.7 million, and 9500 Ethereum (ETH) worth $21.7 million, totaling approximately $81.5 million.
Orbit Chain, founded in South Korea in 2018, is a multi-asset blockchain specializing in cross-chain transfers and is closely linked to the Klaytn network. The hack's impact is magnified due to the interconnectedness of Orbit Chain's operations with Klaytn, affecting multiple platforms.
In the wake of this breach, Orbit Chain has informed users about the hack and is actively engaging with international law enforcement agencies to investigate the root cause. The company is conducting a comprehensive analysis and has initiated a compensation process for affected users, urging them to review their dashboard settings.
Unfortunately, this incident has also opened the door for other scammers attempting to exploit the situation. Numerous impersonators are posing as Orbit Chain on social media platforms, falsely promising reimbursements for losses due to the hack. Orbit Chain has warned its users about these fraudulent claims.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.