2023 Ends with a Bang: Orbit Chain Faces $82 Million Crypto Hack, Raises Security Concerns for 2024

• According to experts, the crypto hacker exploited Orbit Bridge, the exchange’s bridging services, siphoning $82 million worth of crypto coins.
• Orbit Chain has kickstarted its reimbursement process and has reassured the victims of a full refund. 
• Orbit IBC offers a decentralized two-way pegging mechanism based on existing lighting networks, such as Bitcoin’s micropayments and Ethereum 2.0’s scalability solution, Plasma.

The entire crypto community is in a frenzy with the anticipated 2024 crypto bull run. Bitcoin has hit an all-time high of $45,000, and the 2024 crypto predictions have laced the entire industry on edge with the promise of millions. Unfortunately, the crypto industry has maintained its double-edged reputation. The recent surge of activity in the industry has attracted unwanted attention. 

Crypto hacks and scams have been a consistent plague on the industry. Since the FTX crash, the entire industry has been on red alert, with blockchain experts focusing on improving security and compliance measures. 2023 was one of the worst years for security expert, with exchanges doubling their efforts to provide proof of better security measures. Despite this effort, blockchain technology is still a new concept and thus contains plenty of loopholes. 

In a recent development, Orbit Chain became the latest victim of a Crypto hack, resulting in a loss of at least $82 million. The hack involved the exchange’s cross-chain protocol Orbit Bridge, raising the alarm of the entire crypto industry. This recent hack presents a new question for the 2024 bull run: will the anticipated bull run be safe with set blockchain security measures? Or will the growing market present an open basket for hackers and scammers?

Oribit Chain loses $82 million.

On the final day of the 2023 crypto market run, the entire community received shocking news as Orbit Chain announced an $82 million crypto hack. According to experts, the crypto hacker exploited Orbit Bridge, the exchange’s bridging services, siphoning close to $82 million worth of crypto coins. 

On December 31, 2023, an anonymous X user raised the alarm about the cross-chain bridge hack after pointing out significant outflows from the platform. Blockchain sleuth Officer CIA and cybersecurity firm Cyvers quickly responded to the alarm and later confirmed the crypto hack. According to the security firms, the hacker compromised several of the ten multi-signature signatories. 

The crypto hack started after the operator tested the exploit by sending 10 ETH to the infamous TornadoCash, a well-known crypto mixer often at the centre stage of most crypto hacks. The perpetrators channelled the rest through an intermediary address via five distinct transactions.

Also, Read Web3 Awareness Grows as University of Zimbabwe Hosts Blockchain Hackathon.

 According to Orbit Chain, the lost assets included $30 million in Tether (USDT), $10 million in USD Coin (USDC), $21.7 million in Ether (ETH), $9.8 million in Wrapped Bitcoin (WBTC), and a final $10 million tranche of the algorithmic stablecoin DAI.

 Orbit Chain already faces the repercussions of the recent hack as its native token has lost value in the past few days.[Photo/CoinMarketcap]

Upon further investigations, security experts found that the exchanges linked to the Klatyn network, a pivotal later on, blockchain may have played some part in the hack. Unfortunately, Orbit Chain has refused to unveil the specific details concerning the matter, which has remained heightened.

In response to the attack, Orbit Chain has kickstarted its reimbursement process and has reassured the victims of a full refund. Unfortunately, the hack has significantly highlighted the weaknesses in blockchain technology. Many within the community have raised concerns over the potential rise of crypto hacks, especially with the upcoming bull run.

Who is Orbit Chain

Orbit Chain is a South Korean-based crypto exchange focused on trying to bring together a fragmented blockchain community. Like many crypto exchanges, Orbit Chain is a web3 platform that supports multiple assets and blockchain platforms. 

The South Korean Crypto exchange is known for its numerous capabilities for storing, transferring, and verifying information and assets residing on various public blockchain services. The organization utilizes the Decentralized Inter-Blockchain Communication (IBC) to support its functionality. 

Ozys, a South Korean company, expressed an interest in entering the region’s crypto sphere. As a result, in 2018, the organization launched Orbit Chain. Still, to outpace its competition, it designed the exchange to act as a bridge between decentralized protocols. Orbit Chain’s main feature is its unique multi-assets feature, allowing users to utilize crypto assets from different blockchain platforms on a single chain. 

This feature has enabled the exchange to easily manage and transfer users’ assets through decentralized communication challenges of different chains. Aside from facilitating crypto-related services, Orbit Chain is well-known among DApp developers. 

Its flexible environment and tools allow decentralized protocol developers to explore the boundless potential of blockchain technology. Its different services, fast transaction rates, and broad vision have significantly contributed to its exchanges. Orbit Chain boasts of its high levels of liquidity between different assets without developing each chain.

Also, Read Justin Sun’s Crypto Empire Under Siege: HTX and Heco Chain Suffer $115 Million hack.

According to its whitepaper, the South Korean crypto exchange aims to develop a decentralized hub interconnecting multiple assets on its chains. To accomplish this, Orbit Chain has dedicated itself to solving one of the industry’s greatest problems: the Blockchain scalability dilemma. 

Through its inter-blockchain protocol, the orbit has facilitated the decentralized moving of assets between chains and specializes in multi-asset platforms. In addition, Orbit IBC offers a decentralized two-way pegging mechanism based on existing lighting networks, such as Bitcoin’s micropayments and Ethereum 2.0’s scalability solution, Plasma, to establish a communication channel between public chains.

Orbit Chain also introduces a POS-based system to keep up with the changing times, further improving its functionalities. Unfortunately, despite its numerous capabilities, Orbit Chain became the latest victim in a crypto hack, closing off the 2023 market run.

Unfortunately, the matter is still shrouded in secrecy, but the damage is done. Is this the new trend we should anticipate, given the highly anticipated crypto bull run?

• SEO Powered Content & PR Distribution. Get Amplified Today.
• PlatoData.Network Vertical Generative Ai. Empower Yourself. Access Here.
• PlatoAiStream. Web3 Intelligence. Knowledge Amplified. Access Here.
• PlatoESG. Carbon, CleanTech, Energy, Environment, Solar, Waste Management. Access Here.
• PlatoHealth. Biotech and Clinical Trials Intelligence. Access Here.
• Source: https://web3africa.news/2024/01/03/news/orbit-chain-crypto-hack/