Gaming-focused Ronin Network has sadly suffered a hack that may be yet the largest experienced in the crypto industry. On Tuesday, the network announced a loss of over $625 million in USDC and ETH.
According to the blog post released by the network regarding the attack, the attackers used hacked private keys to forge fake withdrawals. The majorly affected spots were the validator nodes for Sky Mavis, the Axie Dao, and the popular Axie Infinity game publishers.
Although the Ronin sidechain requires nine validators with five signatures to withdraw, the attack still persisted. The blog post reports that the attackers found a backdoor through the network’s gas-free RPC node. Access to the node allowed them to get a signature for the Axie DAO validator.
The Ethereum address used by Ronin’s attacker is a new one only previously used to transfer ETH in from Binance a week ago.
The losses recorded by Axie Infinity’s Ronin Network stand at 173,600 for Ethereum and 25.5M in USDC. The total damages suffered are currently in excess of $625 million.
The lion’s share of the attack’s proceeds remains in the attacker’s address, only short of 250 ETH, which has been transferred to various other addresses. The Ronin bridge and Katana AMM have since been paused to facilitate investigations on the matter.
The Ronin Network tragedy is still a developing story. We will continue to update you as the news develops.
Prevalence of Crypto Attacks
As an industry hopeful of revolutionizing the traditional money market, we still have a long way to go in terms of security and regulation.
Not so long ago, the cross-chain DeFi protocol Poly Network was hacked, and over $611 million was lost. The majority of the funds were fortunately returned, but the threat persists.
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