Breaking! Gaming Blockchain Ronin Network Hit by $9.8 Million Ether Hack

Written By Joseph Newman

The Ronin Network, an Ethereum sidechain crucial to the popular NFT game Axie Infinity, has experienced another significant security breach. The Ronin Bridge, used for transferring assets between the Ronin chain and the Ethereum network, was hacked, resulting in the loss of 3,996 Ethereum (ETH), valued at approximately $9.33 million.

  • Breach Confirmation: On-chain security firm PeckShield confirmed the hack, leading Axie Infinity co-founder Aleksander Leonard Larsen to suspend operations for a thorough investigation.

  • Exploit Type: Ethical hackers suggest a Maximal Extractable Value (MEV) exploit. MEV refers to profits derived from reordering transactions awaiting blockchain inclusion.

  • Previous Incidents: This is not the first security challenge for the Ronin Bridge. In 2022, it suffered a $600 million attack when hackers accessed private keys for its validator nodes, leading to significant losses and a temporary bridge closure.

  • Network Governance: The Ronin Bridge’s centralization has been a point of concern, with the team serving as sole validators and bridge operators.

  • Developer Actions: In response to the previous attack, developers raised $150 million to reimburse users and temporarily closed the bridge for security improvements.

  • Market Reaction: Despite the breach, the Axie Infinity (AXS) token has shown resilience, rising 9% amidst broader market recovery.

  • Other Bridge Hacks: The Ronin Bridge joins a growing list of high-profile bridge hacks, including:

    • BNB Bridge: Exploited for $586 million in October 2022, with the hacker escaping with $127 million before the bridge was paused.

    • Wormhole Bridge: Lost $326 million in February 2022 due to a smart contract vulnerability.

  • Recent Incidents: In a related event, Rho Markets lost 2,203 ETH (over $7.5 million) due to a "price oracle misconfiguration," but the responsible group returned the funds after acknowledging their mistake.

The repeated breaches highlight the vulnerability of blockchain bridges, which hold substantial crypto funds and remain prime targets for hackers. The latest Ronin Network hack underscores the need for enhanced security measures and more robust decentralization to safeguard digital assets.

#Web3.0 #NFT #Blockchain #Crypto #Cryptocurrency #AI #Metaverse #OpenSea #AR

Joseph Newman
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