Gaming-Focused Blockchain Provider Loses Over $622 Million in Hack
A gaming-focused blockchain is reporting what might be the new record holder for largest cryptocurrency hack in history.
The incident involves the Ronin Network, an "Ethereum-linked sidechain" from Vietnamese developer Sky Mavis, which has been using the technology for a Pokemon-style game called Axie Infinity. The blockchain is now reporting it’s lost over $620 million in Ethereum and USD Coin due to an apparent hack.
The breach actually took place nearly a week ago, on March 23, but was only discovered today. In a blog post, the Ronin Network said “validator nodes were compromised resulting in 173,600 Ethereum and 25.5M USDC drained from the Ronin bridge in two transactions.”
These validator nodes operate as computers that verify transactions. The attacker hijacked access to four validator nodes at Sky Mavis, in addition to a third-party validator configured with extra privileges, granting the culprit the authority to steal the funds.
“The attacker used hacked private keys in order to forge fake withdrawals,” Ronin Network's blog post added. “We discovered the attack this morning after a report from a user being unable to withdraw 5k ETH from the bridge.”
Many of the looted funds are in the hacker’s digital wallet, which shows the mysterious user has been stealing the cryptocurrencies over the course of six days. In response to the breach, the Ronin Network has halted trading over the blockchain.
“We are working with law enforcement officials, forensic cryptographers, and our investors to make sure all funds are recovered or reimbursed,” the blockchain added. “All of the AXS, RON, and SLP on Ronin are safe right now.”
The previous record holder for biggest cryptocurrency heist involved the blockchain provider
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