In a significant cybersecurity incident, hackers have exploited Orbit Bridge, the bridging service of the cross-chain protocol Orbit Chain, resulting in a total financial loss of $82 million. The breach was brought to public attention through a December 31 post on X by the pseudonymous user Kgjr, who highlighted large outflows from the Orbit Chain Bridge protocol. Blockchain security firm Cyvers and on-chain investigator Officer CIA also corroborated this information. The attackers successfully conducted five separate transactions, transferring $30 million in Tether, $10 million in USD Coin, $21.7 million in Ether, $9.8 million in Wrapped Bitcoin (WBTC), and $10 million in Dai to new wallets.
Orbit Chain, with strong ties to the Klaytn network, a modular layer-1 blockchain, is at the center of this exploit. Klaytn’s block explorer reveals that eight of the largest assets on the Klaytn network by total market capitalization are wrapped assets on the Orbit Bridge. The specific details of the exploit remain undisclosed, prompting concern within the cryptocurrency community about the security vulnerabilities in the Orbit Chain protocol. Despite attempts to seek clarification, Orbit Chain and Klaytn have yet to provide a response regarding the nature and extent of the breach, leaving users and investors anxious about the potential impact on the affected blockchain ecosystem.
This high-profile breach underscores the increasing sophistication of cyber attacks targeting blockchain protocols and raises questions about the security measures in place within decentralized networks. The incident serves as a stark reminder of the ongoing challenges faced by the cryptocurrency industry in ensuring the robustness of its infrastructure against persistent and evolving threats. As the investigation unfolds, the cryptocurrency community will be closely monitoring responses from Orbit Chain and Klaytn, as well as considering the broader implications for the security landscape of cross-chain protocols.