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Ronin Network recovered roughly $10 million in digital assets lost to an MEV exploit early on Aug. 6.
According to an X post, whitehats returned around 4,000 Ethereum (ETH) taken from Axie Infinity’s Ronin Bridge via a Maximum Extractable Value or MEV bug.
MEV refers to the maximum value miners or validators can extract from ordering transactions permissionlessly. The concept is sometimes called an “invisible tax” collected by sophisticated on-chain actors and is much discussed within the crypto community.
Ronin Network said the whitehats who returned funds would receive a $500,000 reward as a bug bounty. Paying ethical hackers for discovering loopholes is common in web3, and incentivizes security experts to earn money by stress-testing decentralized finance protocols.
To avoid future similar incidents, the project will audit its bridge and implement a new system for its cross-chain transaction terminal.
“We aim to shift operation of the bridge away from the current structure. We will be working with the Ronin validators to onboard a new solution and will provide updates on this as the work progresses,” the team said.
Update:
— Ronin (@Ronin_Network) August 6, 2024
The ETH (~$10 M) has been returned and we expect that the USDC will be returned later today. We thank the white hats for their vigilance and integrity. The Bug Bounty Program will reward the white hats with a 500 K bounty.
The bridge will undergo an audit before it is…
Previous Ronin hacks
Ronin Network (RON) and its bridging service have experienced tumultuous times over the years. In March 2022, North Korean hacker group Lazarus stole $600 million from the side chain. The event is still regarded as one of the largest crypto hacks in history.
In February 2024, criminals stole $9.7 million from Axie Infinity co-founder Jeff “Jihoz” Zirlin. However, the cross-chain bridge has recovered from existential debacles, earned a Coinbase listing, and hopes to move past uncertain times. Giants like Binance also stepped in to support the network and help reimburse users.