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Orbit Bridge, hacked for $82 million in major crypto breach

Orbit Bridge

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TL;DR

  • Hackers successfully targeted Orbit Bridge, a key component of the Orbit Chain protocol, leading to a substantial financial loss of approximately $82 million.
  • The exploit, identified just before the New Year, involved unauthorized cryptocurrency transactions, including Tether, USD Coin, Ethereum, WBTC, and DAI.
  • Initial breach reports were brought to public attention through social media posts by users and blockchain security firms.

In a significant security breach, hackers have successfully targeted Orbit Bridge, a key component of the Orbit Chain protocol, resulting in a substantial financial loss. The incident unfolding just hours before the New Year has prompted widespread concern across the cryptocurrency community.

Orbit Chain and Klaytn network connections

The exploit, first brought to light through social media posts by users including Kgjr, Officer CIA, and blockchain security firm Cyvers, involved a series of unauthorized transactions. According to Arkham Intelligence, a blockchain analytics platform, the total amount stolen by the hackers is approximately $81.68 million. This heist was executed through five distinct transactions involving several cryptocurrencies, including $30 million in Tether, $10 million in USD Coin, 9,500 Ethereum, 231 Wrapped Bitcoin (WBTC), and $10 million worth of the algorithmic stablecoin DAI. These funds were transferred to new, previously unused wallets.

Orbit Chain, launched in 2018 in South Korea, is known for its focus on facilitating cross-chain transfers across various decentralized networks. It is used for asset transfers between EVM-compatible networks and the Klaytn network, a modular layer-1 blockchain. The Klaytn network’s block explorer data reveals that eight of the largest assets on this network, by total market cap, are wrapped assets on the Orbit Bridge. Despite having a similar name, Orbit Chain is entirely separate from Orbiter Finance, another cross-chain bridging protocol.

Impact and response to the exploit

The incident has triggered a thorough investigation, with blockchain security experts and the community striving to understand the breach’s mechanics and implications. The exploit of Orbit Bridge, a critical infrastructure piece in the blockchain ecosystem, underscores the ongoing challenges in ensuring the security of decentralized financial platforms. This breach impacts the immediate stakeholders and raises broader concerns about the security and reliability of similar protocols in the blockchain space.

The response to this incident will be closely watched, as it will set a precedent for how the decentralized finance community handles significant security breaches. The event also serves as a reminder of the importance of rigorous security measures and continuous vigilance in the ever-evolving landscape of blockchain technology.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Mutuma Maxwell

Maxwell especially enjoys penning pieces about blockchain and cryptocurrency. He started his venture into blogging in 2020, later focusing on the world of cryptocurrencies. His life's work is to introduce the concept of decentralization to people worldwide.

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