Orbit Chain, a platform that facilitates communication and transactions across various blockchains, has suffered a significant loss of $81 million due to a hack that exploited the platform’s cross-chain bridge. The project confirmed the security breach in a post on X, revealing that a hacker utilized the sanctioned privacy protocol Tornado Cash to fund a wallet before targeting Orbit Chain’s ethereum (ETH) vault. The proceeds of the hack were subsequently transferred to multiple Ethereum wallets, which currently hold 26,741.6 ETH ($64 million) and approximately $18 million worth of the dai (DAI) stablecoin.
Despite the severity of the attack, Orbit Chain emphasized that the funds remain “unmoved” at present. However, the consequences of the breach are evident in the data provided by DefiLlama, which shows a significant drop in the total value locked (TVL) on the platform. The TVL plummeted from $152 million to $71 million, with net outflows totaling $81.88 million.
The native token of Orbit Chain, ORC, experienced a decline of over 13% following the exploit. However, it has since managed to recover, currently boasting a market capitalization of $36 million, according to CoinMarketCap.
This incident adds to the growing concern surrounding security risks within the cryptocurrency industry. In 2023 alone, cryptocurrency users lost nearly $2 billion to scams, rug pulls, and hacks, as reported by security app De.Fi in their annual report. Although this figure represents a decrease compared to the previous year, it highlights the ongoing vulnerability of the industry to such threats.
Taylor Monahan, the developer of Metamask, a popular cryptocurrency wallet, drew attention to the similarities between the Orbit attack and previous hacks conducted by the North Korean hacking group Lazarus Group. Recorded Future, a cybersecurity firm, revealed that Lazarus Group has managed to steal a staggering $3 billion through various hacks and exploits over the past six years.
The incident involving Orbit Chain serves as a reminder of the importance of robust security measures within the cryptocurrency ecosystem. As the industry continues to evolve and attract more participants, it becomes crucial for platforms and users alike to remain vigilant and implement stringent security protocols to safeguard against potential threats.