At the end of March 2022, Ronin – sidechain Ethereum play-to-earn game Axie Infinity, was hacked and took away more than 173,600 Ether (ETH) and 25.5 million USD Coin (USDC)
Sky Mavis reports that hackers managed to gain access to the private keys of validators nodes, leading to the breach of five validators nodes. This is also the required threshold for approving a transaction, from which withdrawals can be authorized.
Ronin Bridge was closed shortly after!
– All deposits and withdrawals are paused until the investigation is complete.
– The game developer called for help from various crypto exchanges and crypto analytics team Chainalysis in order to track the movement of funds and recover them.
At the same time, Sky Mavis ruled out technical vulnerabilities as the core cause behind the attack and blamed it on social engineering. They have also made promises after the attack, claiming that they will ensure that affected users get a refund even if the lost funds are not recovered.
The wallet belonging to the hacker Ronin Bridge has also started sending money (about $7 million) to currency mixing services like Tornado Cash so it can be laundered.