Cross-Chain Protocol Orbit Falls Victim to $82 Mln Exploit

Key Takeaways

• Funds involved $30 million in Tether, $10 million in USD Coin, $21.7 million in Ether, $9.8 million in Wrapped Bitcoin, and $10 million worth of DAI.
• Orbit noted a “comprehensive analysis” is underway in collaboration with cybersecurity startup Theori.

Orbit Chain, a cross-chain protocol, fell victim to a significant breach as hackers exploited its bridging service, Orbit Bridge, siphoning a total of $82 million. The unauthorized access was confirmed on December 31 at 08:52 PM +UTC, leading to a series of substantial outflows from the Orbit Chain Bridge protocol.

The potential exploit first caught attention when pseudonymous Twitter user Kgjr highlighted the large outflows, a concern echoed by Onchain sleuth Officer CIA and blockchain security firm Cyvers.

 In response, Orbit Chain acknowledged the breach in a social media post, stating that a “comprehensive analysis” is underway in collaboration with cybersecurity startup Theori. The protocol is also actively cooperating with international law enforcement agencies to address the security incident.

According to blockchain analysis platform Arkham Intelligence, the breach resulted in the loss of approximately $81.68 million across various cryptocurrencies, including Tether, USD Coin, Ether, Wrapped Bitcoin (WBTC), and the algorithmic stablecoin DAI. 

The funds were moved to fresh wallets in five separate transactions, involving $30 million in Tether, $10 million in USD Coin, $21.7 million in Ether, $9.8 million in Wrapped Bitcoin (WBTC), and $10 million worth of DAI.

Orbit issued a warning to users, cautioning them against falling for scam reimbursement offers circulating on social media under accounts with similar names. The incident adds to a string of security breaches in the cryptocurrency industry, with OKX decentralized exchange suffering a $2.7 million hack earlier this month due to a leaked private key.

Reports indicate that the crypto industry has incurred staggering losses of $1.5 billion from hacks and scams until September 2023. A recent report revealed that crypto users lost nearly $2 billion to scams, rug pulls, and hacks in 2023, underscoring the persistent challenges facing the industry’s security landscape.