The Ronin network, which focuses on gaming, reported a loss of more than $625 million in USDC and ether (ETH).
The attacker used compromised private keys to generate fraudulent withdrawals from the Ronin bridge over two transactions. They transferred $540 million in cryptocurrencies to themselves on March 23, but the corporation only discovered this on March 29, when a client was unable to withdraw their funds.
The Ronin Network, which is also controlled by Sky Mavis, allows players to swap their Axie Infinity digital tokens for other cryptocurrencies such as Ethereum. According to the post, “the attacker discovered a backdoor through our gas-free RPC node, which they abused to obtain the signature for the Axie DAO validator.” Its sidechain has nine validators that require five signatures for withdrawals and is designed to protect the system from these types of attacks.
The blog post further states, “We are working with law enforcement officials, forensic cryptographers, and our investors to make sure all funds are recovered or reimbursed. All of the AXS, RON, and SLP on Ronin are safe right now.”
Both the Ronin Bridge and the Katana automated market maker (AMM) have been halted while investigations continue.
According to the website, “We are working directly with several government authorities to guarantee the offenders are brought to justice”.
According to CoinGecko, the price of RON, the native token of the Ronin network, has dropped by 27% as a result of the announcement.