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Year 2024 is getting very tough for the crypto ecosystem. The global market crash and the crypto hacks are affecting digital currencies. In the series of crypto hacks, Ronin Bridge faced a significant exploit, losing around $12 million worth of cryptocurrency. Such exploits highlight 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 also took 1,998,046.875 USDC. They later converted this to 796.411 ETH ($2,004,520) on Uniswap. The attacker sent 3.996 ETH of the stolen funds to BeaverBuild.
Real Hack or Help?
Blockchain security firm PeckShield suggested that this could be the work of a white hat hacker. These ethical hackers expose vulnerabilities to improve security. They often return the stolen assets. If this is the case, Ronin Network could see the return of funds once they address the security flaws.
The Role of MEV Bots
An MEV (Maximal Extractable Value) bot named “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 unintentionally. According to experts, this is the case in Ronin exploit as well.
Rising Crypto Hacks in 2024
Cryptocurrency hacks have been on the rise this year. Hackers stole $542.7 million worth of funds in the first quarter of 2024 alone. This marks a 42% increase compared to the same period in 2023. July, in particular, recorded a huge number of exploits. There were 16 crypto hacks that targeted DeFi, bridges, and crypto exchanges. Over $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 consolidated $57 million worth of ETH into new addresses, likely in an attempt to cash out.
Ronin’s Response and Future Steps
Following the recent exploit, Ronin Network paused its bridge operations to prevent further losses. Aleksander Larsen, the COO of Axie Infinity and Ronin Bridge, shared on X: “The @Ronin_Network bridge has been paused while we investigate a report from whitehats about a potential MEV exploit. We will follow up with more information shortly. The bridge currently secures over $850M which is safe.”
In a positive development, Ronin Network announced that the stolen ETH (~$10 million) has been returned. They expect the USDC to be returned later today. The white hats involved will be rewarded with a 500K bounty through the Bug Bounty Program.
Future Plans and Audits
The bridge will undergo an audit before it is reopened. Ronin Network plans to shift the operation of the bridge away from its current structure. They are working with Ronin validators to onboard a new solution and will provide updates as the work progresses. The Ronin community and allies have shown strong support during this time.
The Need for Enhanced Security
The Ronin Network’s recent exploit serves as a stark reminder of the importance of security in the crypto space. As cryptocurrency hacks continue to rise in 2024, platforms must prioritize safeguarding their protocols. Ethical hackers play a crucial role in this process. They help identify and fix vulnerabilities before malicious actors can exploit them.