On New Year’s Eve, a hacker responsible for the $82 million Orbit Chain breach transferred $47.7 million to the cryptocurrency privacy mixer Tornado Cash after a five-month hiatus. According to blockchain analysis firm Arkham Intelligence, the hacker moved 12,932 Ethereum, worth $47.7 million, to a fresh address on June 8th through seven transactions before transferring the funds to Tornado Cash.
What Motivated the Hacker’s Silence?
This cyber-attack was initially reported to have resulted in $82 million in damages, but newer estimates from Arkham suggest the figure might be closer to $100 million. Arkham, one of the first to detect the fund transfers, highlighted in a June 8th post that the hacker stole over $100 million in Ethereum and DAI from Orbit Chain five months ago and remained silent until now.
Etherscan data reveals that the $47.7 million in Ethereum transferred through Tornado Cash was mostly sent in batches of 100 ETH. The hacker chose not to move the stolen $20 million in DAI or other assets seized from the cross-chain bridge. The current balance of the hacker’s holdings stands at $71.2 million, which includes $51.1 million in Ethereum, along with smaller amounts of Wrapped Bitcoin (wBTC), Wrapped Ethereum (wETH), Orbit Chain (ORC), and USD Coin (USDC).
Why Did Orbit Chain Offer a Reward?
The breach took place in the final hours of 2023 on December 31st. Orbit Chain confirmed the attack the following day, stating that it was working with international law enforcement. On January 11th, Orbit Chain announced via its X account that it was offering up to $8 million for information leading to the identification of the attacker or the recovery of the stolen assets.
Orbit Chain employs the Inter-Blockchain Communication Protocol to facilitate data and value transfers across the Cosmos ecosystem. According to DefiLlama, approximately $37 million is currently locked on the network, a significant decline from the $149.25 million locked just hours before the December 31st attack. The network had peaked at $313 million in August 2022.
Key Insights from the Incident
- The hacker remained inactive for five months before moving a significant portion of the stolen funds.
- Only Ethereum was moved to Tornado Cash; other stolen assets were left untouched.
- Orbit Chain’s total value locked (TVL) has seen a dramatic decline post-attack.
- There is a significant reward for information leading to the hacker’s identification or asset recovery.
Conclusion
In the first quarter of 2024, hackers stole $542.7 million in cryptocurrency, marking a 42% increase from the same period in 2023. However, attacks on smart contracts saw a substantial decline, dropping from $2.6 billion in 2022 to $179 million in 2023, a 92% decrease. This incident highlights ongoing security challenges and the need for robust measures to safeguard digital assets.
