Hackers have breached Ronin, an Ethereum-based side network operated by Sky Mavis associated with the popular online game Axie Infinity, in the latest crime to hit the digital asset sector, according to a report. Reuters report.
Hackers stole nearly $615 million worth of cryptocurrency, and Ronen - which allows cryptocurrency to be transferred via various "blockchain" technology (Blickchain), said on Tuesday that the hackers stole on March 23 about 173,600 Ethereum and 25.5 million US dollars, which makes the theft one of the largest thefts recorded.
The "Sky Mavis" Twitter account revealed the incident, and stated that the hack had occurred since March 23, but it was only discovered earlier on Tuesday, March 29.
An important announcement regarding a security breach on the Ronin Network.
https://t.co/88TilOGTX6
— Axie Infinity🦇🔊 (@AxieInfinity) March 29, 2022
According to the investigations conducted into the crime, the hack involved the use of private keys to falsify the transaction, and a look at the hacker's wallet shows that the money is still in their wallet.
According to the report, the process of transferring cryptocurrency from one wallet to another needs 5 out of 9 audit signatures, to validate the deposit or withdrawal, but somehow, the attacker managed to obtain the authentications of the four Skymavis Ronin wallet and a third-party authenticator that it manages. Axie DAO.
The investigation team revealed that it is working to mitigate future attacks by increasing the audit from 5 to 8 keys.
It was also revealed that the team was already in touch with the security teams of the crypto exchanges to inform them when the funds were transferred to any of them.
At the same time, the ronin network has been temporarily suspended, and according to data from Coingecko, the cryptocurrency company, the value of the network's AXS cryptocurrency has rapidly decreased.
Crypto community reaction
Members of the crypto community (representing stakeholders and crypto wallet owners) reacted to the news of the hack and some wondered how the hack went on for nearly a week without anyone noticing.
Some of the responses advised cryptocurrency owners to move the original coins from one chain to another in anticipation of another leak coming.
Other members of the community wondered if the hackers would return the loot or if the team would return the money to the affected users.
The attack focused on Skymavis, an intermediary between the AxiInfinity game and the blockchain of other cryptocurrencies such as Ethereum, where users can deposit Ethereum on the Ronin network, and then use it to purchase non-fungible tokens or in-game currency or they can sell their in-game assets and withdraw funds as required. It was reported by The Verge.