5.9k Share this
The latest crypto hack has targeted a gaming-focused blockchain network that supports the popular video game Axie Infinity.

Hackers made off with about $US625 million ($830 million) worth of Ethereum and USDC, two cryptocurrencies, in one of the largest crypto hacks of all time.

The hackers breached the Ronin Network, an independent and Ethereum-compatible blockchain developed by Axie Infinity publisher Sky Mavis.

Axie Infinity is a successful web3 game in which players use NFT digital pets, called Axies, to interact with the game’s community. The latest crypto hack targeted the gaming-focused blockchain network that supports the game. (Supplied)

Axie Infinity co-founder Jeff Zirlin discussed the hack on stage during a keynote address at the NFT LA conference.

“We realized the Ronin network has been exploited for 173,000 [Ethereum] and around 25 million dollars in USDC,” Zirlin said, under a screen with the words “State of the NFT Union: Where we are today and what’s next.”

USDC is a so-called stablecoin whose value is pegged to the US dollar.

“It is one of the bigger hacks in history,” he added, while vowing to continue building.

“We believe in a future of the internet that is open and owned by the users.”

Hackers made off with about $US625 million ($830 million) worth of Ethereum and USDC, two cryptocurrencies, in one of the largest crypto hacks of all time. (Supplied)

Last year an anonymous hacker stole roughly $US600 million ($797 million) in cryptocurrency from Poly Network, a decentralized finance network, in what was called the largest crypto heist in history.

The hacker later gave it back.

John Reed Stark, a former chief of the Security and Exchange Commission’s Office of Internet Enforcement, told CNN the latest hack “is a sobering reminder of just how vulnerable Web3 marketplaces are to cyber attacks.” (Web3 refers to the idea of a decentralized internet powered by the blockchain, the technology that underpins various cryptocurrencies.)

“The entire web3 marketplace is so fraught with chaos and lawlessness, we may never learn the truth about what happened,” said Stark.

“And unlike U.S. financial firms who must report cyber-attacks fairly, accurately, promptly, etc., NFT and other Web3 marketplaces do not have to report anything at all.”

Axie Infinity is a successful web3 game in which players use NFT digital pets, called Axies, to interact with the game’s community.

Players can use their Axies to battle other players and to breed new Axies. In 2021, the game’s creator raised $US152 million ($201.95 million) in Series B funding led by famed VC fund Andreessen Horowitz.

According to a blog posted to the Ronin network’s official Substack on Tuesday, the system has halted activity on networks that allow players to convert assets in the Axie Infinity universe and to convert currency between the Ethereum and Ronin blockchains.

Players who keep digital funds on the Ronin network are currently unable to make transactions.

Beginning on March 23, attackers compromised private keys used to validate transactions on the network, according to the company blog post. These keys allowed the malicious actors to forge fake withdrawals.

The activity went unnoticed until a user was unable to withdraw funds and filed a report.

The network pledged to “ensure no users’ funds are lost,” according to the blog post. Most of the stolen funds currently remain in the hacker’s crypto wallet, the company said.

“We are working with law enforcement officials, forensic cryptographers, and our investors to make sure that all funds are recovered or reimbursed,” the network tweeted.

At the NFT LA conference, some attendees just learning about the hack were unperturbed by the news.

“I don’t think the coin is going down too bad,” said Justin Seeley, who owns Axie Infinity NFTs and tokens, said, referring to Axie Infinity’s Ronin token that was had plummeted 20 per cent on the news of the hack.

“Twenty percent … that’s not too bad. Other projects would be down way worse,” added Ben Wright, who also says he is invested in Axie

“We’re in crypto; 20 per cent is nothing,” said Seeley.

Other NFT play-to-earn (P2E) games at the conference were surprised to learn the news

“Axie got hacked!” two workers told each other in disbelief at a booth for Polker, a P2E poker game.

Rare Pokemon card fetches $420,000 at auction

“It worries me, but I like it,” said Conor Thacker, Polker’s managing director. “The more exploits that happen now, the less will happen in the future.”

Source: 9News

5.9k Share this
You May Also Like

Neo-Nazi guilty of being member of banned far right group National Action

The case brings the number of convicted members of National Action to…

Schoolgirl Ava White begged friends ‘don’t leave me’ as she lay dying from knife attack, court hears

Schoolgirl Ava White begged friends ‘don’t leave me’ as 12-year-old was lying…

World’s biggest eruptions, from Iceland to Tonga

The 1883 volcanic explosion in Krakatoa in Indonesia was previously considered to…

Elon Musk’s SpaceX launches 53 more Starlink satellites into orbit

Elon Musk’s SpaceX launches 53 more Starlink satellites into orbit before Falcon…

These toxic mushrooms are no fairytale, expert warns, as fungi thrive in the wet

They look like something out of a fairytale, or a Super Mario…

Chilling dangerous dog sign and mangled kennel at farm where boy, three, was mauled to death

The owner of the dog which mauled a three-year-old boy to death…

Prime Minister topples child while playing soccer on campaign trail

Prime Minister Scott Morrison has had an unfortunate sporting mishap in Tasmania…

Elon Musk Claims He Will Vote Republican in Next Election

Tesla CEO Elon Musk says he will be voting Republican in the…