Good day everyone,
I hope you are all having a good day, welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at the recent hack on the gaming network Ronin, which resulted in a $9.8 million loss.
Ronin Hack
It was revealed by Peckshield that a major security breach which resulted in the Ronin Network losing 3,996 Ether tokens, valued at approximately $9.8 million. Peckshield discovered the breach and they noted that the exploit could be the work of a white hat hacker. The main distinction between white hat hackers and malicious hackers is that the white hat hackers typically return stolen assets after demonstrating the existence of security flaws.
In terms of the Ronin hack, the funds have since been returned and the hacker has been rewarded $500,000. Ronin network announced:
“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 reopened. We will provide updates as we make progress on this audit.
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.
We thank the Ronin community and our allies for their support today.”
The hack was completed via a MEV bot, which is an automated tool used by blockchain validators to identify and exploit arbitrage opportunities in decentralized finance (DeFi) protocols. These bots are often used for profit, although as shown they can also be used to exploit vulnerabilities within a protocol. The MEV bot “0x4ab” executed the $9.8 million transfer via the Ronin bridge.
Back in July a MEV bot was used to exploit the Rho Markets protocol for $7.6 million. All those stolen funds were returned within one week. The Ronin security breach is part of a broader trend in the cryptocurrency space, where even malicious hackers occasionally return stolen funds. The value of the Ronin Network native token RON saw a rise of 3.1% following the announcement. This could be attributed to investors' optimism about the security and integrity of their funds following confirmation that the attack was from white-hat hackers.
Have a great day.
Peace. CryptoGod-1.
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