Hackers heist $600M in crypto from blockchain network

Hackers breached a video game-linked blockchain network called Ronin and stole about $600 million worth of cryptocurrency, one of the largest such heists to date.

The Ronin network is connected to the online video game Axie Infinity, where players collect and breed virtual pets called Axies, usually to battle them against each other, a la Pokemon and other properties. After paying an initial startup cost, players earn in-game currency that can then be sold on the company’s marketplace for Ethereum tokens. The Ronin network is what linked the game to the company’s blockchain.

The company announced last night that the network had been compromised, allowing for 173,600 Ethereum and 25.5M USDC (another token, linked to the U.S. dollar) to be stolen. Transactions usually need the signatures of multiple validators to clear, a decentralized approach meant to limit attack vectors, but the company said the hackers took advantage of a back door that allowed them to seize five of the nine validator signatures and therefore control the network. The hackers, according to the announcement, actually managed to gain access on March 23, and drained the company’s accounts in two transactions. The attack was only discovered after a user was unable to withdraw their Ethereum tokens.

This is one, if not the, biggest crypto heist to date. The only one to come close was the recent attack on the Poly Network, where losses were also in the $600 million range (and even then, much of it was given back by the hackers who apparently had a change of heart).

The company said it is currently working with law enforcement, forensic cryptographers and their own investigators to address the matter. They intend to ensure that all funds are either recovered or reimbursed. It added that its remaining holdings are currently safe.