Robert Steinadler, a year ago
The week has started with Bitcoin printing a yearly high but yesterday the bad news broke via Twitter when the team behind Ronin announced that they have been hacked. The loss is immense with 173.600 Ether and over 25 million USDC the Ronin hack is one of the biggest incidents the crypto industry has ever seen.
How did this happen? What do we know about the hacker? And will the victims get their funds back?
The Ronin network has 9 validator nodes and within a multi-key setup, it is required that 5 out of 9 nodes sign a transaction to make it happen. It appears that a hacker was able to exploit 4 validator nodes from Sky Mavis and an additional node that is run by the Axie DAO to sign transactions with their private keys through a backdoor.
In effect, the attacker managed to drain 173.600 Ether and 25,5 million USDC which is roughly worth $600 million at the time of writing. Ronin is the Ethereum sidechain that the blockchain game Axie Infinity is based on. The bridge is needed to transfer assets between Ronin and Ethereum, hence between the game and Ethereum as the primary transaction layer for the users.
It was yesterday when the team noticed the hack only because another user was attempting to withdraw 5.000 ETH from Ronin. Since Ether and USDC reserves were depleted, the transaction failed. According to an emergency blog post all AXS, SLP, and RON tokens are safe and unaffected. The Ronin bridge and the Katana DEX are taken down for the time being until the situation is resolved.
That is the toughest question at the moment because over 170.000 Ether is still sitting very comfy in the attacker’s wallet. It appears that he has sent smaller sums to several international exchanges that already communicated their commitment to investigate and secure whatever funds they can secure.
Law enforcement agencies as well as blockchain analysis company Chainalysis are on the hacker’s trail. The most likely outcome is that it is going to be impossible to launder such a huge sum under the eyes of the public and of investigators. This might lead to an agreement between the hacker and Sky Mavis offering a bounty and impunity in return for the stolen cryptos.
Mar 21, 2023
Arbitrum just launched the ARB token with a long-awaited airdrop. Many traders were active on the platform just to be qualified to receive the tokens. This raises the question of whether the recent success of Arbitrum is a product of airdrop hunters searching for another opportunity or if this represents the organic growth of the platform. Layer-2 networks are believed to solve many problems blockchain technology is still facing today.
Mar 16, 2023
Airdrops are very popular among crypto investors. They offer the opportunity to gain free tokens and possibly make a fortune selling them at the right time. There are even airdrop hunters trying to guess which project presents the next opportunity to earn free coins and tokens. Arbitrum was rumored to be the next in line since it started. The waiting is over as the team has announced the airdrop of the ARB tokens this month.
Feb 16, 2023
The world is waiting for Shibarium, the marveled second-layer solution that is supposed to be the killer application for Shiba Inu (SHIB). Alas, the community and investors are still kept waiting with no release date being published so far. Once more rumors are going wild on social media and the “Shib army” is pushing the narrative that we are going to witness another bull run on the shoulders of Shibarium.
Feb 06, 2023
Uniswap is one of the few bigger pillars of the DeFi industry. The protocol relies on a series of smart contracts and offers automated market maker functionality that makes the biggest decentralized exchange happen. Another important aspect of Uniswap is its governance but it seems that recently not everybody is happy with whom is taking the vote and their choice of options.
Sign up to stay informed via our email updates