In a recently posted announcement, Ronin Network – the sidechain of the game Axie Infinity said that they were attacked by hackers. As a result of the incident, 173,600 Ethereum and 25.5 million USD were withdrawn from Ronin through 2 transactions.
According to Ronin, the attacker used the private key to make the withdrawal. However, the Ronin admin team discovered the attack after receiving a report from a user about not being able to withdraw 5,000 Ethereum from the system.
Each Ethereum is having a market price of 3,420 USD, the total amount of cryptocurrencies that hackers extorted from Ronin’s system is about 625 million USD. Given the size of the incident, it is one of the most severe attacks in the history of the cryptocurrency industry.
According to Ronin, to deposit or withdraw money on this system, 5 out of 9 signatures are required. Bad guys hacked and took control of 4 Sky Mavis Ronin validators and 3rd party validators operated by Axie DAO.
At the moment, most of the stolen money (about $600 million) in the form of 175,913 Ethereum is currently in the hacker’s wallet. Part of the money stolen by the hacker was transferred to the FTX exchange.
Before the aforementioned incident, Ronin’s system was temporarily down. Ronin operator said that it is actively handling to prevent other attacks that may occur in the future. In the short term, Ronin will increase the validation threshold from 5 to 8.
Ronin said he is in contact with security teams at major exchanges. Besides, this unit is also working with Chainalysis to track the stolen funds.
At the same time, Sky Mavis – the studio that developed the game Axie Infinity will also work with various government agencies to ensure that cyber criminals are brought to justice.
For Axie Infinity players, it is currently not possible to withdraw or deposit funds to the Ronin Network. Sky Mavis now offers a guarantee that stolen funds will be returned or recovered. Sky Mavis also said that AXS, RON and SLP tokens are now safe on the system.
Axie Infinity is a Blockchain game developed by studio Sky Mavis. Sky Mavis has about 90 employees with at least 60 of them working in the office in Vietnam.
Axie Infinity is the result of Sky Mavis – a game studio co-founded by CEO Nguyen Thanh Trung (SN 1992) and 4 other people. Three of the total five founders of the project are Vietnamese, in addition to one American and one Norwegian.
With the release of the game Axie Infinity, at the end of last year, CEO Nguyen Thanh Trung of this game was also honored in the top of the most influential figures in the cryptocurrency world.
@ Vietnamnet
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Source: Vietnam Insider