As the world welcomed the new year, the cryptocurrency community was shaken by a major cyber attack. Hackers made off with a staggering $82 million in ill-gotten gains by exploiting Orbit Bridge, a critical bridge service of the cross-chain protocol Orbit Chain. Meanwhile, ORC, the altcoin project of the Orbit ecosystem, experienced a major decline due to the impact of the news. Here are the details…
4 altcoins were stolen
The alarming breach was first brought to public attention on the night of January 1 by an anonymous Twitter user named Kgjr, who highlighted suspiciously large outflows from the Orbit Chain Bridge protocol on social media platform X (formerly Twitter). The gravity of the situation was also emphasized by both Blockchain researcher Officer CIA and cyber security firm Cyvers, and the information in question was confirmed.
According to findings from blockchain analysis platform Arkham Intelligence, hackers staged a sophisticated attack by orchestrating five separate transactions to steal various crypto assets. The stolen loot includes $30 million in Tether (USDT), $10 million in USD Coin (USDC), 9,500 Ether (ETH), 231 Wrapped Bitcoin (WBTC), and a hefty $10 million stash of the algorithmic stablecoin DAI.
The consequences of the violation are critical
The consequences of this breach extend beyond immediate financial losses. The integration of Orbit Chain with Klaytn (KLAY), a layer-1 Blockchain, raises serious questions about the security of interconnected systems in the cryptocurrency ecosystem. Notably, data from Klaytn’s block explorer underscores the integral role of the Orbit Bridge, revealing that eight of Klaytn’s largest holdings by market cap are “wrapped” assets acquired from the compromised bridge.
This breach exposes vulnerabilities not only in Orbit Chain but also in the broader context of cross-chain protocols, highlighting the urgent need for enhanced security measures and robust risk management strategies. The repercussions of this security breach are significant, eroding trust in decentralized finance (DeFi) systems and underscoring the growing challenges facing the crypto industry. As authorities and security experts race to investigate the breach, the cryptocurrency community is also bracing for possible regulatory responses and increased scrutiny.
ORC price bottomed
The new year begins on a somber note for both Orbit Chain and the broader blockchain ecosystem, serving as a stark reminder of the persistent threats facing cryptoassets and the imperative to strengthen defenses against increasingly sophisticated cyberthreats. In the latest update, the Orbit Chain (ORC) token is currently experiencing a 20% decline and is trading at 0.056 as of the time of writing this report.
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