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Ronin Network, one of the leading gaming blockchains, has reportedly lost $9.8 million of Ether in an alleged hack. This event is another in the list of increasing crypto exploits of 2024. News sources state that the network lost 3,996 Ether tokens, worth more than $9.8 million. This deficit reflects the ease of hacks within blockchain networks and paints an appalling image concerning the regulatory operations to secure digital assets. As the crypto arena grows, the significance of strong security protocols becomes more integral to circumvent such massive exploitations.
White Hat Hacker Involvement in the Ronin Network Exploit
According to an Aug. 6 X post by PeckShield, the hack may be attributed to a white hat hacker, an ethical hacker who cashes on vulnerabilities to locate weak links in a crypto protocol. White hat hackers usually give back compromised funds after showing the code has an insecure entryway. If the attacker involved in the Ronin Network exploit is actually an ethical hacker, there is a probability of getting the funds back soon.
Historically, it is quite common for attackers with wrong intentions to return stolen funds. In May, it was reported that a hacker returned $71 million of stolen crypto after the hack went viral incident and brought the hacker’s potential IP to light.
MEV Bot Involvement in the Exploit
There is still a probable silver lining in this event, as reported by sources. The exploit was apparently caused by a maximal extractable value (MEV) bot. MEV bots are software tools that validators use to analyze arbitrage opportunities across decentralized finance. These bots tend to unknowingly hack into a loophole in a protocol.
Sources close to the source state that the alleged $9.8 million transaction of the Ronin Network exploit shows that it was done by MEV bot “0x4ab.” The MEV bot then sent a small part of the funds, 3.9 Ether tokens, to wallet “0x952,” also called “beaverbuild,” according to blockchain data.
In addition, MEV bots have also been associated with other exploits. For example, the $7.6 million Rho Markets exploit in July was reportedly executed by an MEV bot. The protocol was successful in recovering the entire lost funds within a week.
Crypto Hacks on the Rise in 2024
The Ronin Network exploit was validated to initiate from an MEV bot, as mentioned by Cyvers in an Aug. 6 X post. A message sent to the address by the deployer of the Axie Infinity contract stated: “Hey, thanks a lot for white hat saving user funds today. Can we chat over Blockscan chat?”
These rising crypto hacks in 2024 could potentially outnumber those in 2023. The first quarter of 2024 underwent an alleged $542.7 million worth of lost funds, making a 42% increase relative to the same period in 2023, news sources report.
July was especially an unfortunate month for the crypto market. A mysterious hacker stole more than $230 million from WazirX, an Indian cryptocurrency exchange, in the second-largest cryptocurrency exploit of 2024 so far. The hacker has been reported to have attempted to funnel the lost funds. On July 22, the WazirX hacker allegedly transferred $57 million worth of ETH into new crypto addresses, probably for liquidating.
Takeaway from July 2024 Hacks
In July only, there were more than $266 million reported worth of crypto hacks across 16 separate attacks, with the WazirX incident on top of the list. These appalling numbers highlight the time-sensitive need for augmented security measures within the crypto industry. Ronin Network exploit is another name that will haunt the investors.
As the sector continues to grow, it must glide through the increasing obstructions linked with security vulnerabilities. The roles of ethical hackers and automated MEV bots are integral in this arena, as they can either help reduce risks or, if mishandled, make them worse. Strengthening defences against such hacks is now imperative for the industry’s long-term stability and reliability, as reported. Learn more about the crypto hacks and their implications with TNYR.
