Arbitrum's largest liquidity management company, Orange Finance, was hacked, resulting in a loss of $840,000

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Orange Finance, a liquidity management protocol headquartered in Arbitrum, recently suffered a hack that resulted in losses exceeding $840,000. On January 8, the Orange Finance team announced via X that a hacker successfully took over the admin address, upgraded the smart contract, and transferred funds to the hacker's wallet.

Details of the attack and response

In the official announcement, the Orange Finance team stated that the hacker stole funds by taking over the admin address and upgrading the contract. The team currently expresses uncertainty about the specific details of the incident but is actively investigating. They also warned users against interacting with the platform and emphasized that the contract is no longer controlled by Orange Finance.

To attempt to resolve the issue, the team reached out to the hacker via on-chain messages, requesting a response within 24 hours and promising not to take legal action, instead treating the incident as a white hat hacking behavior.

Losses and fund direction

According to information from blockchain analytics firm Cyvers Alerts, the hacker exchanged the stolen funds for Ethereum (ETH). Prior to this attack, Orange Finance's total value locked (TVL) exceeded $1.5 million, making it one of the largest liquidity management protocols on the Arbitrum network.

User safety reminder

The Orange Finance team urges users to immediately revoke all contract approvals related to the platform to ensure the safety of their funds and to avoid any further interaction with the platform’s contracts.

Summary

This attack serves as a reminder of the security risks associated with smart contracts in the DeFi space. While the team continues to investigate this incident, the hacker's activities have resulted in severe losses for the platform's funds and reputation. Users should remain vigilant and follow safety advice to avoid further risks.

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