The Ronin Project, a network block chain which supports video game Axie Infinitysuffered a mass piracy which led to the theft of $620 million in cryptocurrencies. The operation is considered biggest cryptocurrency heist to date.
According to a post from sub-stack of the company, the attacker carried out two transactions: 173,600 Ethereum ($594.5 million) and 25.5 million in USDC. To achieve this, he compromised validator nodes and used hacked private keys to falsify withdrawals.
The company discovered the breach this morning, after a user was unable to withdraw 5,000 ETH. Security experts have clarified that the hacker (or group of hackers) used a back door to control the five validators required for a cryptocurrency withdrawal.
“The validation key scheme is configured to be decentralized to limit an attack vector,” Ronin said. Validators check and compare information on the blockchain to ensure it is accurate.
In this case, the attack was directed against the validators of the company Sky Mavis, which distributes Axie Infinity. The online game, considered the largest collection of NFTs in the world, is similar to Pokemon. The main mechanic is to collect small creatures called Axies that can spawn and put them into battle.
Axie Infinity rewards players with cryptocurrencies that they can redeem for cash every 14 days. At Gambling in Venezuela is a full time job for several people. According to Diego Ortiz, co-founder of Venezuela to the MoonVenezuelans came earn up to 370 dollars per month in 2021, a number that is constantly being reduced due to the in-game economy.
Ronin hopes to recover the stolen cryptocurrencies
the Fraudulent transactions have already been confirmed and the company took steps to prevent another hack. Ronin contacted the security teams of the main to exchange of cryptocurrencies. The network works with forensic cryptographers and investors to ensure that all funds are recovered or refunded.
The Ronin hack surpasses that of the Poly network, when an attacker mined $610 million from the blockchain platform in August 2021. The hacker, Mr White Hatreturned all stolen goods and said his intentions were for the company to fix its vulnerabilities.
It is not known if the same will happen in this situation. So far it is known that the stolen cryptocurrencies are kept in the attacker’s account.
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