🚨 Blockchain: An Overview of Orbit Chain Hack
Orbit Chain, a cross-chain protocol, was victim to a significant cyberattack on the eve of the New Year, leading to a substantial financial loss.
The platform, known for its ability to facilitate transactions across various blockchains, lost approximately $81-82 million in this.
Orbit Chain operates as a bridge service, enabling cross-chain transfers between distinct decentralized protocols, with notable connections to the Klaytn network, a modular layer-1 blockchain.
🛠 Technical Breakdown
The exploit was first detected through abnormal outflows from the Orbit Chain Bridge protocol.
Pseudonymous individuals and blockchain analysis platforms like Arkham Intelligence identified these irregularities, signaling a potential protocol breach.
The attackers conducted the hack in five separate transactions, targeting major cryptocurrencies such as Tether, USD Coin, Ether, Wrapped Bitcoin (WBTC), and the DAI stablecoin, moving them to new wallet addresses.
🔓 Security Flaws and Exploitation
The breach was attributed to vulnerabilities in the platform’s security framework, particularly in the `withdraw()` function and signature validation processes.
The `withdraw()` function did not validate the token parameter against a list of authorized tokens and most importantly didn't ensure the `msg.sender` had the right to withdraw the specified token and amount, leaving it vulnerable to unauthorized withdrawals.
This allowed the hackers to manipulate the system and extract large sums of digital assets.
Further exacerbating the situation, the stolen funds were initially moved using Tornado Cash, a privacy-focused cryptocurrency tumbler, complicating the tracing of the funds.
💥 Impact
Following the breach, there was a notable decline in the total value locked (TVL) on Orbit Chain, along with a significant drop in the price of its native token.
🌐 Broader Implications
This incident is a stark reminder of the persistent security risks in the crypto industry.
It underscores the need for enhanced security protocols, especially in cross-chain operations, and the importance of continuous monitoring for unusual activities that could indicate a breach.
👀 Stay vigilant, always prioritize your security and diligently conduct your own research (DYOR) to safeguard your assets!
🔐 In the meantime I wish you all a cyber-safe and secure 2024!
