Axie Infinity’s Ronin Network Suffers $625M Exploit It may be the largest exploit in DeFi history.

Abstract :

• The Ronin bridge has been exploited for 173,600 Ethereum and 25.5M USDC.
• The Ronin bridge and Katana Dex have been halted.
• Their team is working with law enforcement officials, forensic cryptographers, and their investors to make sure all funds are recovered or reimbursed. All of the AXS, RON, and SLP on Ronin are safe right now.

Sky Mavis’s Ronin validator nodes and Axie DAO validator nodes were compromised resulting in 173,600 Ethereum and 25.5M USDC drained from the Ronin bridge in two transactions (1 and 2). The attacker used hacked private keys in order to forge fake withdrawals. We discovered the attack this morning after a report from a user being unable to withdraw 5k ETH from the bridge. currently Ronin bridge and Katana Dex has been discontinued.

Here is the attacker wallet address:

https://etherscan.io/address/0x098b716b8aaf21512996dc57eb0615e2383e2f96

At present, the hacker has converted some USDC into ETH, and transferred 6250 ETH in a decentralized manner, of which 1221 ETH was transferred to the FTX and Crypto.com exchange platforms, and the remaining balance of funds remained in the hacker’s address. The hacker launched the attack and the source of funds was Binance withdrawal.

Ronin team‘s taken

1. They moved swiftly to address the incident once it became known and we are actively taking steps to guard against future attacks. To prevent further short term damage, we have increased the validator threshold from five to eight.
2. They are in touch with security teams at major exchanges and will be reaching out to all in the coming days.
3. They are in the process of migrating our nodes, which is completely separated from our old infrastructure.
4. They have temporarily paused the Ronin Bridge to ensure no further attack vectors remain open. Binance has also disabled their bridge to/from Ronin to err on the side of caution. The bridge will be opened up at a later date once we are certain no funds can be drained.
5. They have temporarily disabled Katana DEX to due to the inability to arbitrage and deposit more funds to Ronin Network.
6. They are working with Chainalysis to monitor the stolen funds.

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Community Alert: Ronin Validators Compromised

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