Ronin Network Breached, Over $625 Million Cryptocurrency Stolen

Despite all the benefits glamorized by enthusiasts, cryptocurrencies also have their downsides. Ronin Network, a gaming-focused blockchain, found out the hard way when it became the latest victim of a massive cryptocurrency theft, costing it more than $625 million in cryptocurrency.

The breach was discovered earlier today when a user was unable to withdraw 5,000 ETH (Ethereum) from the bridge, but it appears to have happened on March 23, last Wednesday. The hacker took away 173,600 Ethereum and 25.5 million USDC (USD coin, which is a stablecoin) in two transactions, using hacked private keys in order to fake fake withdrawals.

While 6,250 ETH was transferred to various other addresses, most of the stolen funds remain with the attacker.

In response to the theft, Ronin has suspended the Ronin Bridge and disabled Katana DEX for the time being, and will reopen the bridge later. Additionally, it works with law enforcement officials, forensic cryptographers, and its investors to ensure that all funds are recovered or refunded.

For those unaware, Ronin Network supports the popular blockchain video game Axie Infinity and acts as a bridge between the video game and blockchains, helping with the transfer of cryptocurrency in and out of the game.
Axie Infinity allows creature-centric NFT players to enter the game and then spend more cryptocurrency to acquire and raise various beasts that they can deploy in battles. Users can either make deposits in Ronin and buy NFTs or in-game currency, or sell their in-game assets and withdraw the money.

Ronin revealed that the hacker gained access to five (Sky Mavis’ four Ronin validators and a third-party validator operated by Axie DAO) of the nine validating nodes needed to allow users to make deposits or withdrawals. He exploited a backdoor through his gasless RPC node to obtain the signature of the Axie DAO validator once he gained access to Sky Mavis systems.

However, Sky Mavis has assured that AXS, SLP and RON (in-game cryptocurrencies from the Axie Infinity gaming metaverse) have not been compromised and are safe. It also migrates its nodes, which are separated from its old infrastructure. It also works with Chainalysis to monitor stolen funds.

“As we have witnessed, Ronin is not immune to exploitation and this attack has reinforced the importance of prioritizing security, remaining vigilant and mitigating all threats,” said said the company. “We know that trust must be earned and we use all the resources at our disposal to deploy the most sophisticated security measures and processes to prevent future attacks.”

Ronin Network Breached, Over $625 Million Cryptocurrency Stolen

Source link Ronin Network Breached, Over $625 Million Cryptocurrency Stolen

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