Ronin Network Loses $9.8 Million in ETH, Pauses Bridge

• Ronin Network faced a major security breach, leading to the theft of around $9.8 million in Ethereum.
• In reaction to the exploit, Ronin Network paused its bridge to prevent further losses and address the issue.

Ronin Network has experienced a significant security breach, resulting in the loss of nearly $9.8 million worth of Ethereum (ETH). This incident highlights the growing concerns surrounding crypto security, particularly amidst the recent wave of hacking activities.

On August 6, 2024, Ronin Network, which underpins the popular play-to-earn game Axie Infinity, reported a suspicious transaction involving the transfer of 3,996 Ethereum, valued at over $9.8 million. The blockchain network took immediate action by halting its bridge to address the issue. This move was prompted by the detection of the large outflow linked to a potential MEV bot. That is often associated with exploiting market inefficiencies.

Initial investigations suggest that a white-hat hacker—an ethical security expert—might be behind the exploit. This individual could be testing the blockchain’s defenses. This theory is based on the nature of the transaction and the timing of the network’s response. The network promptly paused the bridge after flagging the suspicious transfer.

The crypto sector has been grappling with a surge in security breaches throughout July 2024, a peak in substantial financial losses. Notably, WazirX, a centralized finance platform, suffered a massive $230 million loss, which led to over $260 million in total losses from hacking incidents in that month alone. 

Further, in a similar incident from February, Jeff Zirlin, co-founder of Axie Infinity’s Ronin Network, revealed that someone hacked his personal wallets on the Ronin chain, leading to a loss of about $9.5 million in Ethereum.

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