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Peckshield disclosed a significant security incident affecting the Ronin Network in a Tuesday X post, resulting in the theft of 3,996 Ether tokens, estimated to be worth around $9.8 million.
Speculation of White Hat Hacker Involvement in Ronin Security Incident
The breach was first identified by the blockchain security company Peckshield, which conjectured in an August 6 X post that the exploit might have been executed by a white hat hacker.
A crucial difference exists between white hat hackers and malicious entities: white hat hackers usually return stolen assets after revealing the presence of security vulnerabilities.
Nevertheless, in this instance, the funds have not yet been returned, casting doubt on the hacker’s true motives.
This ambiguity also pertains to the nature of the breach, with many suggesting it could have been initiated by a maximal extractable value (MEV) bot.
Axie/Ronin is a cursed project I swear
-Ronin bridge $600M hack March 2022
-Axie/Ronin co-founder $9.7M hack February 2024
-Now this bridge incident— ZachXBT (@zachxbt) August 6, 2024
MEV bots are automated systems employed by blockchain validators to pinpoint and capitalize on arbitrage possibilities within decentralized finance (DeFi) protocols.
While these bots are primarily intended for profit, they can occasionally unintentionally exploit weaknesses within a protocol.
Further analysis indicated that the MEV bot “0x4ab” facilitated the $9.8 million transfer through the Ronin bridge.
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A small fraction of the stolen assets, totaling 3.9 Ether, was subsequently transferred to another wallet linked to the address “0x952” or “beaverbuild.”
This move suggests a possible ethical motivation behind the hack, as similar incidents have resulted in the return of funds by those accountable.
Previous Security Incidents and White Hat Responses
Shortly prior to the Ronin security breach, a comparable event occurred at Rho Markets in July, where an MEV bot exploited the protocol for $7.6 million.
Significantly, all the stolen assets were recovered within a week, establishing a precedent for the potential recovery of assets in such cases.
The Ronin security breach is part of a larger trend within the cryptocurrency sector, where even malicious hackers occasionally return misappropriated funds.
A victim who fell prey to a sophisticated ‘address poisoning’ attack has successfully recovered almost all of the stolen funds.#Hack #Scamhttps://t.co/GJEcS0BfvN
— Cryptonews.com (@cryptonews) May 12, 2024
In May, a similar situation unfolded when an attacker involved in a wallet poisoning scam returned $71 million worth of wrapped Bitcoin (WBTC) following intense public and investigative pressure.
The return was reportedly prompted by a report from the on-chain security firm SlowMist, which identified potential IP addresses linked to the attacker.
This recent occurrence contributes to a worrying trend: around $266 million was lost to crypto hacks in July alone, including a staggering $230 million loss by the Indian exchange WazirX.
The post Gaming Blockchain Ronin Falls Victim to $9.8M Security Breach appeared first on Cryptonews.
