Cross-Chain Project Orbit Chain Exploited, Losing $81 Million
A major exploit occurred on Orbit Chain, resulting in a loss of $81 million just hours before the new year. The exploit targeted the Orbit Bridge, causing the price of the protocol’s native token, ORC, to drop by almost 20%. Hackers drained the assets from the protocol in multiple transactions, including USDT, USDC, ETH, WBTC, and DAI, transferring them to fresh wallets. Orbit Chain is currently investigating the incident and collaborating with law enforcement. Additionally, scammers are attempting phishing scams, impersonating Orbit Chain and offering reimbursement for hack losses. Users are warned to avoid these fraudulent accounts.
Hackers Exploit Orbit Chain’s Bridging Service
The exploit on Orbit Chain was conducted through its bridging service called Orbit Bridge. Multiple users, including Kgir, Officer CIA, and Cyvers, alerted the community to significant outflows from the protocol. The hack was confirmed by Orbit Chain itself, promising a thorough analysis and cooperation with law enforcement agencies. Data from Arkham Intelligence revealed that the hackers were able to access seven out of ten multisig signers, stealing millions of dollars in various assets. As a result of the exploit, the price of the ORC token experienced a significant drop.
Orbit Chain’s Background and Impact
Orbit Chain, launched in 2018, is a blockchain that specializes in cross-chain transfers between decentralized networks. It is commonly used for asset transfers between EVM-compatible networks and the Klaytn Network. The protocol’s connection to Klaytn is evident through the large number of wrapped assets on the network. Following the hack, the ORC token’s value declined by almost 20% within 24 hours, currently trading at $0.057. The incident has raised concerns about the security of decentralized protocols and highlighted the presence of scammers attempting to exploit the situation.
Beware of Phishing Scams
Aside from the hack, scammers are taking advantage of the situation by impersonating Orbit Chain and offering reimbursement to affected users. These scammers operate on X and ask users to click on phishing links. Despite having a gold checkmark and a square profile picture, indicating an official account, the scammers misspell Orbit Chain, while the legitimate account does not have a blue tick. Orbit Chain has issued a warning, informing its users that any account offering reimbursement is fraudulent and should be avoided.
Hot Take:
Orbit Chain’s recent exploit emphasizes the need for increased security measures in the crypto space. The significant loss of funds demonstrates the vulnerabilities that exist in decentralized protocols. It is essential for users to exercise caution and remain vigilant, especially in the face of phishing scams. As the cryptocurrency ecosystem continues to evolve, projects must prioritize security to protect user funds and maintain trust in the industry.
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