3,996 ETH and 1.9M USDC were stolen and recovered from the Ronin network.
The year 2024 is going to be very difficult for the crypto ecosystem. The global market crash and crypto hacks are affecting digital currencies. In a series of crypto hacks, Ronin Bridge has experienced massive exploitation, losing around $12 million worth of cryptocurrency. Such exploits present ongoing security challenges in the blockchain world.
Details of lost funds
Ronin Network, a popular gaming blockchain, lost 3,996 Ethereum tokens in the hack. The attacker took 1,998,046.875 USDC. They later converted this to 796.411 ETH ($2,004,520) at Uniswap. The attacker sent 3.996 ETH of the stolen funds to BeaverBuild.
Real hack or help?
Blockchain security firm PeckShield has suggested that this could be the work of a white hat hacker. These ethical hackers expose vulnerabilities to improve security. They often return stolen property. If this is the case, Ronin Network can see refunds once they fix the security flaws.
The role of MEV Bots
The MEV (Maximum Extractable Value) bot “0x4ab” appears to be involved in the exploit. MEV bots help validators find arbitrage opportunities in the DeFi world. However, these bots can sometimes exploit loopholes without realizing it. According to experts, this is also in Ronin's exploits.
Crypto Hacks on the Rise in 2024
Cryptocurrency hacks have been on the rise this year. Hackers stole an estimated $542.7 million in the first quarter of 2024 alone. This mark is 42% compared to the same period in 2023. July, in particular, recorded a huge number of exploits. There were 16 crypto hacks targeting DeFi, bridges and crypto exchanges. More than $266 million worth of cryptos were lost in these hacks. The hack involving the Indian cryptocurrency exchange WazirX is the biggest of all. An unknown hacker stole $230 million. The hacker later merged $57 million worth of ETH into new addresses, possibly in an attempt to cash out.
Ronin's reaction and future actions
Following the latest exploit, Ronin Network has temporarily suspended bridge operations to prevent further losses. Alexander Larsen, COO of Axie Infinity and Ronin Bridge, shared on X: “The @Ronin_Network bridge is standing still, as we investigate the MEV exploit report from the Whitehats. We will follow up with more information soon. The bridge is currently over $850 million safe.
In a positive development, Ronin Network has announced that the stolen ETH (~10 million USD) has been returned. Expect the USDC to bounce back later today. Participating white hats will be rewarded with 500K in Bug Bounty program.
Future plans and audits
The bridge will be audited before it reopens. Ronin Network plans to move the bridge operation away from the existing structure. They are working with Ronin Validators to develop a new solution and provide updates as the work continues. The Ronin community and partners have shown strong support this season.
The need for improved security
The recent exploit of the Ronin network serves as a great reminder of the importance of security in the crypto space. In the year With cryptocurrency hacking on the rise in 2024, platforms must prioritize securing their protocols. Ethical hackers play an important role in this process. They help identify and remediate vulnerabilities before malicious actors exploit them.
