One of the largest hacks in the crypto industry just took place as Axie Infinity’s Ronin network loses $625 million to a hacker. The hacker breached the network with the vulnerability and stole Ethereum and USDC. After the incident, the co-founder of Axie Infinity shared about the same at an NFT LA conference. He said that the hacker had stolen 170,000 ETH and 25 million USDC.
Axie Infinity’s Ronin network loses $625 million
Before this incident, the largest hack was $600 million on the Polygon network. However, in that case, the hacker did return the funds after playing around a bit and pointing out the vulnerabilities. It’s difficult to say whether Axie will be that lucky this time. This hack also portrays Web3 in a bad light as such hacks seem to get more common. The former chief of SEC’s internet enforcement office says that this reminds us how vulnerable Web3 is to cyber-attacks.
He also added that it is probable that they never actually find what happened. The firm is also not bound to share the details with the authorities like the US Financial firms. We still have a long way to go for Web 3 to actually become good enough and replace Web2. The exploitation also resulted in the price of the coin plummeting by 20%, but it’s not something that we need to fret about. If anything, it’s a dip, investors can buy.
The steps taken by Axie Infinity
After the incident and the announcement of the hack, the Ronin network was frozen to prevent further exploitation. If anyone is holding their funds on the Ronin network, they will not be able to do any transactions for now. Plus, conversion of currency between Ethereum and Ronin won’t also be possible in the game.
Axie has also announced that no user funds were lost, and the hackers still have them in their wallet. So, their team is working with law enforcement officials and other experts to recover the stolen Ethereum and USDC. Popular crypto exchanges like FTX and Binance have also come forward to help. The CEO of FTX said they are investigating the issue, while Binance’s CEO said they would be providing assistance.
What are your thoughts as Axie Infinity’s Ronin network loses $625 million to hackers? And do you think that the hackers will return the funds this time? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.