Axie Infinity Hacked for Estimated $625 Million

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A Massive Blow to One of the Biggest Blockchain Games

A nightmare scenario for those involved with Axie Infinity and the Ronin Network, the popular blockchain game was the target of a digital theft of Ethereum (ETH) and USDC resulting in a combined loss of over $625 million. A Ronin newsletter post reported the compromise and even pointed to the crypto wallet that holds the stolen funds. The post has been regularly updated with the actions taken and results and includes an FAQ for users as this obviously raises questions about the security of Ronin software. 

Judging by the information released by Ronin, the funds were stolen using internal accounts that were accessed by the hacker. This means that individual players of Axie Infinity were not affected but this sort of swing in the credits held by a single individual and the news of the exploited system has dropped the value of RON according to CoinGecko

Various Ronin services appear to be temporarily unavailable while the hack is being dealt with. In a positive sense, both Ronin and Axie Infinity staff have been transparent about the process. Lots of updates have been shared through various social media channels and through official news sources since the attack. The COO of Axie Infinity reported on Twitter that the hack was the result of “social engineering and human error” in a December 2021 incident. 

While massive hacks do happen from time to time, the question remains of how often these attacks could occur. Thanks to the tools established through blockchain tech, transfers such as these are traceable but it is unclear what sort of legal actions might occur in the aftermath of this massive theft.