Hackers took almost $540 million worth of cryptocurrencies from Blockchain Company Ronin. It is the second-biggest crypto hack, next to the Poly Network heist.
On March 23, unidentified hackers took Ether and USD Coins from the blockchain company. Hackers took about 25.5 million USD Coins and 173,600 Ether tokens by stealing private keys to gain access to the crypto funds. The breach took place on March 23 but was discovered on March 29.
Crypto Hack on Ronin Blockchain
Ronin is a blockchain company that powers Axie Infinity games. Hackers stole private keys to take the money. The stolen funds were worth almost $540 million at the time of the heist. The value has now moved upwards to around $615 million.
The hack was discovered on Tuesday, March 29. It is one of the biggest hacks in the crypto market history, say authorities. We are working with legal officials and forensic cryptographers, tweet Ronin Network officials.
It is yet another mass crypto hack, say, investors.
RON prices were trading at $2.30 on March 28, 2022. It saw a sharp single-day drop to $1.82. It is not the right time to buy Ronin, as the current sentiment is bearish. Ron prices dropped more than 20% on the disclosure of the hack.
Ronin did not respond immediately to the news. However, a blog post mentioned that hackers had taken the passwords that gave access to the crypto funds. The company is working with government agencies to trace unknown hackers.
The hackers have transferred the funds to their digital wallets. They have transferred only 6,250 Ethereum coins to other addresses, and the balance remains in their wallets. The hack that took place earlier was detected only on Tuesday, March 29. The heist was detected only when a customer could not withdraw his funds.
The Ronin sidechain places emphasis on high security. Nine validators need five signatures to make a withdrawal. Additional security is made to protect the website against cyber-attacks. But the hackers entered through the gas-free RPV node and made off with millions of crypto funds.
The Ronin network allows users to exchange digital coins earned in the mobile game Axie Infinity. The game attracts players to earn cryptocurrency and collect the non-fungible tokens (NFTs) from the game. Many have lost their funds from the heist, which is said to be the second-largest in the crypto industry.
Previous Digital Currency Heists
The heist exposes the drawbacks of decentralized finance in the crypto sector.
Such heists regularly trouble the crypto platforms. In August 2021, hackers stole almost $610 million from Poly Network. But the hackers returned most of the funds later.
Japan-based exchange Coincheck platform lost more than $530 in 2018, Coincheck. Another Japanese platform Mt. Gox lost almost $530 million in 2014.
The Ronin Bride hack is the most recent, says crypto analysis company Elliptic. The crypto sector needs more regulations to protect the fund of investors. There is no regulatory authority or law to control the crypto market. The anonymity of users is the chief advantage of the crypto market, which is also one of its defects.
Ronin network’s native token RON prices crashed more than 25% on the news of the heist. AXS, the Axie Infinity token prices fell more than 20%.
Sky Mavis Company behind the Axie Infinity game pledges to reimburse players the funds lost. Sky Mavis Chief Operating Officer Alexander Leonard Larsen states that players and speculators have lost money. Efforts are on to trace the hacker and get back the lost funds.
The overall Sky Mavis treasury is affected, as millions of funds are lost.
The Singapore-based Sky Mavis Company developed Ronin. The Vietnamese Sky Mavis is the parent company of the Ronin Network and owns Axie Infinity.
SKY Mavis company did not respond to any comment. The company says, “We are in contact with law enforcement authorities and our investors”, say authorities.
Top Cryptocurrency Prices Today
Despite geopolitical problems arising, the crypto market can hold its head higher.
Bitcoin prices rally higher to $46,570 levels as the war between Russia and Ukraine shows signs of easing. Bitcoin prices are up 1.2% this year as they trade above the key support level at $45,000.
Ethereum prices (ETH) are $3,357 on Tuesday, March 31, 2022. Solana (SOL) prices are trading at a two-month high at $123.89.
DOGE coins are trading at $0.1410, and Shibu Inu (SHIB) is trading at $0.000026.
Progress in peace talks in the war raging between Russia and Ukraine supports market sentiment. The global crypto market cap is at $2.14 trillion as investor confidence rises in the market.
The biggest concern plaguing cryptocurrencies is the problem of scaling. Cyber security issues trouble the market. The decentralized crypto market works outside the control of central authorities. The current heist on Ronin Company exposes the vulnerability of the crypto market.