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Hacks and compromising of networks in the Crypto space could turn out sometimes to be a huge loss, as happened when Ronin bridge attacked
On Tuesday last week, 29th March, Ronin network’s official Twitter handle announced the security breach on the platform. After which Axie Infinity’s substack page, the Ronin bridge and decentralized exchange Katana stopped for a while. Internal initial probe estimated an exploit that cost 173,600 Ether (ETH) and 25.5 million in USD coins (USDC), totalling both the assets; the combined value per the same day was $612 million.
In a statement, the developers behind the project said that they were working with officials of law enforcement and forensic cryptographers. Further, they said that ensuring the recovery of investors’ funds that will be reimbursed and all the RON, SLP and AXS tokens were safe on Ronin.
Recently, some activity has been seen on the blockchain address, which was flagged as having some involvement in the Axie Infinity Ronin bridge hack. Several transactions were recorded from the suspected Ethereum address over the past couple of hours.
The first movement of the funds having 1000 ETH, valued at about $3.5 million sent to another address, while several other transactions of 100 ETH followed subsequently that went to Ethereum mi\xing service, Tornado Cash. This movement was first noticed and reported on earlier Monday by Colin Wu, a Chinese crypto analyst.
Criminals or users having illicit intentions hardly use major exchanges as most of them need intense procedures for signing in, such as KYC. Here crypto exchanges that are assumed to be used for lost funds transactions like FTX, CryptoCom and Huobi have ensured to take action. It’s a standard procedure for bad actors to confuse the transactions several times before taking out the cash in fiat currency.
Tornado Cash has turned out to be the weapon of choice for numerous hackers and scammers. It provides anonymous and private transactions for ERC-20 and Ethereum tokens by breaking the on-chain link between the destination address and source. It is a perfect solution for someone who wants to move stolen assets.
Immutable Vision’s founder stated that such actions tend to lead to more tight regulations and punishments that trouble legitimate investors. He said that the failure of blockchain privacy results and acts as ammunition for strict regulations that impacts legitimate institutional and retail investors.
Similar things happened with the traditional banking industry, which gradually became full of restrictions and bureaucracy for common people in order to make it safe for them.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
