Orbiter Finance and How to escape accountability by screwing your users over again

Orbiter Finance, a web3 bridge protocol that aimed to facilitate seamless bridging between L2 networks, recently found itself embroiled in a series of unfortunate events that put both its users and reputation at risk. This article aims to shed light on the security breach that occurred in their official Discord server, the subsequent lack of timely communication and support for affected users, and the controversial compensation campaign that followed.

On May 31st, 2023, Orbiter Finance's official Discord server was compromised by hackers. All channels were locked, leaving users in a state of confusion and concern. The hackers took advantage of the situation by posting a link to a fake website, promising users an airdrop of the highly coveted Orbiter token.

Unsuspecting users who connected their wallets to the phishing site were prompted to sign an allowance, resulting in the draining of their funds. This incident highlights a significant lapse in Orbiter's operational security and raises questions about the measures in place to protect user information.

https://preview.redd.it/3dof8d7zxbbb1.png?534&format=png&auto=webp&s=91b248bbd4a5b053a77a64d4b8f85b5f56fdc6a6

Following the hack, Orbiter regained control of the Discord server on June 1st. However, instead of promptly addressing the incident and providing clear instructions to affected users, they chose to keep all channels locked, except for the announcement channel and the support ticket function.

In their initial communication, Orbiter downplayed the severity of the situation, referring to the hack as an "inconvenience." This lack of transparency and empathy disregarded the fact that users had suffered substantial losses, totaling over $500k in tokens and NFTs. The inadequate response left affected users feeling unheard and undervalued

Tl;Dr: They didn't

For an entire month, Orbiter remained silent about the incident, leaving affected users in the dark and fostering a sense of frustration and mistrust. It was not until July 5th that Orbiter finally broke their silence, announcing via Twitter that they would be issuing refunds to affected users. However, this announcement came just two days before the deadline, leaving users with very little time to claim their compensation.

To make matters worse, Orbiter failed to address the compensation campaign directly on their Discord server. Instead, they directed users to join a text channel that was quickly removed, with minimal explanation or instructions provided. The only official announcement made on the Discord server's announcement channel was a 6-hour extension due to users not claiming their refunds. This lack of clear communication within their official communication channels further undermined user confidence.

Then maybe extend it by 6 days instead of 6 hours?

The security breach and subsequent mishandling of the situation by Orbiter Finance have highlighted the importance of robust operational security and effective customer support. By allowing its official communication channels to be seized and misused, Orbiter put its users at risk and eroded trust within the community.

Furthermore, the delayed compensation campaign and the limited time provided for users to claim refunds raised concerns about Orbiter's commitment to customer welfare. The rushed nature of the compensation process, coupled with the lack of comprehensive communication, only served to exacerbate the frustrations felt by affected users.

As investors and users of decentralized finance protocols, it is crucial to exercise caution, thoroughly research projects, and consider the operational security and support capabilities of the teams behind them. Orbiter Finance serves as a stark reminder of the potential risks involved and the importance of demanding transparency, accountability, and timely communication from the platforms we entrust with our assets