Yet another security breach has left the world aghast when one of the most popular DeFi protocols built on the Arbitrum blockchain, named Orange Finance, lost more than $840,000 to hackers. The attacker, who broke into the platform by attacking the vulnerabilities in the smart contracts, compromised the admin address and successfully withdrew funds from the system.
According to Cyvers Alerts, the stolen funds were immediately converted to ETH, making it very difficult to trace the assets or recover them. Though the Orange Finance team is actively investigating the incident, information on how the hack occurred remains scarce.
Users have been advised to not interact with the affected smart contracts and revoke any approvals granted to Orange Finance. The team confirmed that the compromised contract is no longer under their control, and they are working to secure the platform and prevent further losses.
In a surprise move, Orange Finance has sent the hacker a message through Arbiscan, a blockchain explorer for Arbitrum, offering him a deal for the return of the funds stolen. It’s uncertain what the outcome of the situation would be, as it is currently an amicable approach by the team.
This attack highlights the persistent risks associated with DeFi platforms, especially those related to vulnerabilities in smart contracts. Users should be careful and vigilant with their digital assets, especially when interacting with platforms that have recently had security incidents.
Orange Finance assures the community to keep posted on updates about their investigations and attempts to recover stolen funds. This will be provided as and when available.
Also Read: Crypto Lost $2.2 Billion to Hackers: Top 5 Hacks of 2024