Orbit Chain Hit by $81M Cross-Chain Bridge Exploit

• Orbit Chain Suffers $81 Million Loss from Hacker Exploit
• Hacker's Subsequent Actions
• Impact on Total Value Locked (TVL) and Orbit's Native Token
• The Prevalence of Cyber Security Risks in Cryptocurrency
• Comparison with Previous Hacks

Orbit Chain Suffers $81 Million Loss from Hacker Exploit

Orbit Chain, a cross-chain communication and transaction platform, recently experienced a loss of $81 million due to a security breach. The hacker responsible for this exploit allegedly used a wallet funded by Tornado Cash, a sanctioned privacy protocol, to attack Orbit Chain's Ethereum$2,315 -2.42% (ETH) vault.

Hacker's Subsequent Actions

Following the successful breach, the profits were dispersed among several Ethereum wallets, currently holding an estimated $64 million worth of 26,741.6 ETH and approximately $18 million in the Dai (DAI) stablecoin. Orbit Chain has announced that these funds remain unmoved at this time.

Impact on Total Value Locked (TVL) and Orbit's Native Token

DefiLlama data indicated a significant drop in the Total Value Locked (TVL) on Orbit Chain, from $152 million down to $71 million, resulting in net outflows nearing $81.88 million. In the aftermath of the exploit, the platform's native token, ORC, suffered over a 13% decrease in value. However, it has since recovered to a market cap of $36 million, as reported by CoinMarketCap.

The Prevalence of Cyber Security Risks in Cryptocurrency

Cryptocurrency users reported nearly $2 billion in losses due to scams, rug pulls, and hacks in 2023, according to a yearly report by security app De.Fi. Although this figure represents a decrease from the previous year's losses, it underscores the continual vulnerability of the industry to security risks.

Comparison with Previous Hacks

Metamask developer Taylor Monahan compared the Orbit attack with those previously executed by Lazarus Group, a North Korean hacker collective. Lazarus Group has reportedly stolen $3 billion over the last six years through similar exploits, as per cybersecurity firm Recorded Future.

Edited by Jonathan Stoker