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Biggest Crypto Theft

Biggest Crypto Theft: $600m Stolen From The Axie Infinity Hack

In what could be among the biggest crypto theft, hackers stole cryptocurrency worth $600 million from the blockchain called Rohin, which backs up the game Axie Infinity which is an NFT (non fungible token) based game. 

Biggest Crypto Theft: What Actually Happened?

According to Motherboard, these hackers stole 173,600 Ethereum, whose present collective value is nearly $600 million. Sky Mavis which operates this game disclosed about the breach, stating that it has frozen Robin Bridge that enabling the exchange of funds from the blockchain of the company. 

Axie Infinity is a famous “play to earn” NFT game that allows the players to earn crypto by playing but with the initiating cost that is also paid in digital currency.  According to Sky Mavis, the hackers of this biggest crypto theft, have exploited a backdoor in a Remote Procedure Call node that authenticates transfers from and to Robin with the aid of hacked private security keys. 

Hackers from these crypto scams have been successful in sweeping a large number of Ethereum and USDC digital currencies from Rohin after they have managed to compromise the network nodes successfully. This Axie Infinity hack was discovered by heist on Tuesday when a different user aimed at withdrawing 5000 Ether through the Robin bridge, but the hackers started to siphon off the cryptos one week back.  

Sky stated that they are working with the law enforcement for recovering the stolen Ether and USDC digital currencies from the hackers. They said in a statement, 

“We are working with law enforcement officials, forensic cryptographers, and our investors to make sure there is no loss of user funds. This is our top priority right now.” 

The firm also stated that this backdoor could be an outcome of the holdover from the previous year. He sought help from the DAO (Axie Decentralised Autonomous Organisation) to manage transactions for free as there was a huge rush in November 2021. The deal was scheduled to last until December, but Sky forgot in revoking the access to its b\lockchain bridge after the incident. The hackers received access to the Sky Mavis system and they even got the signature from Axie DAO validator for availing the gas-free RPC. 

Axie Infinity Hack: Why It Happened?

Computers called nodes functioned by Axie Infinity maker the Axie DAO and Sky Mavis that support a so-called bridge — software that allows people to convert tokens into ones that can be availed on another network — were attacked, with the hacker draining what is known as the Ronin Bridge of 173,600 ETH and 25.5 million USDC tokens in two varied transactions. The breach took place on March 23 but was only identified on Tuesday, as per Ronin, the blockchain that operates Axie Infinity.

The Robin Bridge scam is the latest to portray that bridges are often rife with issues. The computer code of many is not audited, enabling hackers to exploit the vulnerabilities. It is often not evident who operates them and exactly how. Personalities of validators, who are supposed to order transactions on bridges, are often covered in mystery. And yet there are numerous bridges out there, and they move hundreds of millions of dollars worth of digital currencies. According to  Wilfred Daye, head of Securitize Capital,

“The fact that nobody notices for six days scream aloud that some structure should be in place to watch illicit transfers.” 

The value of Ron, which is a token used on the Ronin blockchain, decreased about 22 percent after this biggest crypto theft was revealed. AXS, a token used in Axie Infinity, fell nearly 8.5 percent, as per CoinMarketCap.

Conclusion

As of now, the Ronin Bridge is frozen, so no transaction will go through. The firm said, 

“As of right now users are unable to withdraw or deposit funds to Ronin Network. Sky Mavis is committed to ensuring that all of the drained funds are recovered or reimbursed,”. 

Sky further added that the Ronin Network is “not immune to exploitation” and this biggest crypto theft has led the entity to plan its security measures again. 

“We know trust needs to be earned and are using every resource at our disposal to deploy the most sophisticated security measures and processes to prevent future attacks.”

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