The Ronin Network has once again fallen victim to a security breach. Approximately $12 million in Ethereum (ETH) and USD Coin (USDC) was stolen, highlighting ongoing vulnerabilities within the blockchain bridge. In a recent X post, renowned on-chain analytics firm Peck Shield Alert reported two unusual transactions on the Ronin bridge. The first transaction involved 3,996 ETH, valued at roughly $9.86 million. The second transaction saw nearly 2 million USDC tokens being transferred. These transactions raised immediate red flags and prompted a swift response from the Ronin Network.
Alexander Larsen, co-founder and COO of Axie Infinity and the Ronin Network, addressed the situation in a recent X post. He revealed that the Ronin Network bridge has been temporarily paused to investigate a potential Maximal Extractable Value (MEV) exploit, as suggested by whitehat hackers. Despite the breach, Larsen assured that the bridge, which secured over $850 million, remains safe.
As the investigation unfolds, some experts speculate that this may be a whitehat hack, where ethical hackers identify and report vulnerabilities to help improve security. However, Larsen’s comments indicate an MEV exploit, dismissing the whitehat theory for now. The exact nature and motive behind the hack remain unclear.
It was only after the return of $10M worth of ETH that it was confirmed that the hack was done by whitehat hackers. Ronin confirmed the return of funds and that the Bug Bounty Program will reward them with a 500K bounty. Furthermore, they said that the bridge will undergo an audit before it is reopened and that they aim to shift the operation of the bridge away from the current structure.
As CryptoTale reported earlier, the WazirX exchange experienced a significant hack, contributing to the financial turmoil. LI.FI also reported a $10 million loss, while Bittensor saw $8 million stolen. These incidents highlight the urgent need for improved security measures across the industry.
The latest hack just continues the Ronin Network’s string of misfortunes. The hack that occurred in March 2022 worth $600 million was one of the biggest heists of cryptos and dealt a big blow to the network. This new $12 million theft only worsens the security situation of the network and questions about its future.
The hack of Ronin Bridge shows that cybersecurity remains prominent in the cryptocurrency market. Going forward, preventive measures and improvements in safety would be the main priorities for further investigations.
