Decentralized Cross-Chain Protocol Orbit Bridge Hacked
The decentralized cross-chain protocol Orbit Bridge has been hacked, resulting in the theft of millions of dollars in cryptocurrencies. The attack occurred at 08:52 pm UTC on December 31 and unauthorized access was gained by the attackers. The protocol is currently working with law enforcement agencies to investigate the incident and determine the cause of the breach.
Hack Detected After Large Outflows
The hack was first noticed when a Twitter user reported that new wallets were being created for various cryptocurrencies, including Wrapped Bitcoin (WBTC), Tether (USDT), USD Coin (USDC), and Dai (DAI). Test transfers to these wallets were visible, but larger transactions were not. It was later revealed that the estimated damage amounted to over $81.5 million.
Possible Vulnerability in Protocol or Centralized Server Compromised
An investigation into the hack suggests that the attacker gained access to seven out of ten multisig signers before breaching the protocol. However, blockchain security firm SlowMist has proposed that a vulnerability in the protocol or a compromise of the network’s centralized server may have been responsible for the attack.
Exploiter Drains Orbit Bridge Protocol
The exploiter initiated transactions with 10 ETH from crypto mixer Tornado Cash and proceeded to drain the Orbit Bridge protocol. They then converted USDT and WBTC into ETH and USDC into DAI. Currently, they hold 26,751 ETH worth $61.5 million and $15 million in DAI.
Orbit Warns Against Reimbursement Scams
While details of the incident have not yet been provided by the Orbit Chain team, they have cautioned users about potential reimbursement scams. Users are advised to interact only with the official protocol account and not trust any other accounts claiming to offer reimbursement for the hack.
Users Request Cancellation of Pending Transactions
As a result of the hack, the Orbit Bridge is currently shut down, leading users to request the cancellation of pending transactions. Some users are also expressing concerns about the lack of communication from the Orbit team regarding when the protocol will connect validators.
Hot Take: Decentralized Protocol Orbit Bridge Falls Victim to Major Hack
The decentralized cross-chain protocol Orbit Bridge has suffered a significant hack, resulting in the loss of millions of dollars in cryptocurrencies. Unauthorized access was gained by attackers, and investigations are underway to determine the cause of the breach. The exploit involved creating new wallets for various cryptocurrencies and draining the protocol’s funds. While users await further details from the Orbit Chain team, they are warned against falling for reimbursement scams and are requesting the cancellation of pending transactions. This incident highlights the ongoing security risks associated with decentralized protocols and serves as a reminder for users to exercise caution when engaging with such platforms.
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