Ronin Network is a renowned blockchain platform in the gaming sector. It serves as the backbone for many popular games like Axie Infinity and Pixels.
Recently, Ronin Network experienced a major security breach. Approximately $9.8 million worth of Ethereum (ETH) was withdrawn from the system in an unusual manner.
Surprisingly, the hacker agreed to return all the stolen funds. So far, they have returned 3,991 ETH, worth around $10 million.
Security experts like PeckShield suggest this might be the work of a “white hat hacker” – individuals who exploit security vulnerabilities to help improve systems, not to cause harm.
Causes of the Incident
- Fault in MEV Bot: The incident involved an MEV (Maximum Extractable Value) bot. These are tools traders use to find profit opportunities in the decentralized finance (DeFi) world.
- Vulnerability in Update: A recent update from Ronin inadvertently created a vulnerability, allowing withdrawals without the required number of votes.
Related: What is Ronin Network (RON)?
Ronin Network’s Response
- Thanking the Hacker: The Axie Infinity team publicly thanked the hacker for safeguarding users’ funds.
- Reward for Discovery: Ronin rewarded the bot owner $500,000 for discovering the vulnerability.
- Fixing the Issue: They are working to fix the issue and will thoroughly audit the new update before deployment.
Late last year, the Ronin Bridge was hacked for over $600 million, marking one of the largest crypto heists ever. Cryptocurrency hacks are on the rise. In the first quarter of 2024 alone, $542.7 million was stolen, a 42% increase compared to the same period last year.
