Security Breach at Orbit Chain Leads to Loss of Over $80M

Key Takeaways

Orbit Chain confirmed a security breach of over $80 million on December 31st.
Users are advised to be cautious of scam reimbursement offers.
The incident is part of a broader pattern of significant security issues within the Web3 space, highlighting the need for stronger security measures.

Orbit Chain, a renowned service facilitating cross-chain transactions, recently announced a security breach within its network. This incident occurred on the last day of December at 8:52 pm UTC, leading to considerable unease among its user base.

On January 1st, the company announced that it is undergoing a thorough investigation into the breach’s causes, collaborating with cybersecurity startup Theori. In addition, Orbit Chain is also in communication with various international law enforcement agencies to address the situation.

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The breach’s ramifications are significant, with blockchain analytics company Arkham Intelligence estimating a loss of around $81.68 million in Tether (USDT), USD Coin (USDC), Ether (ETH), Wrapped Bitcoin (wBTC), and Dai (DAI).

In the wake of this breach, Orbit Chain has cautioned its users against falling prey to fraudulent repayment offers that have started circulating on social media, particularly under accounts mimicking the company’s name.

Established in 2018 in South Korea, Orbit Chain is a multi-asset blockchain renowned for facilitating transactions between decentralized networks, notably Ethereum Virtual Machine-compatible networks and Klaytn. 

This breach at Orbit Chain is part of a worrying trend in the Web3 space. A recent report by blockchain security platform Immunefi highlighted that in 2023, the Web3 sector witnessed $1.8 billion in losses due to hacking and scamming activities.

It is worth noting that the notorious North Korean hacking group Lazarus Group is holding around 17% of the stolen funds. The largest reported exploit of the year involved the Mixin Network, with losses exceeding $200 million.

This incident underscores the growing need for enhanced security and vigilance in the cryptocurrency and blockchain sectors, highlighting the vulnerabilities within these emerging technologies.

Gile is a Market Sentiment Analyst who understands what public events may form what emotions. Her experience researching Web3 news and public market messages – including cryptocurrency news reports, PRs, and social network streams – is critical to her role in helping lead the Crypto News Editorial Team.
As an intelligent professional in public relations, together with the team, she aims to determine real VS fake news patterns, and bring her findings to anyone searching for unbiased news and events happening in the FinTech markets. Her expertise is uncovering the latest trustworthy & informative Web3 announcements to the masses.
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