Skip links

RONIN NETWORK CRYPTO HEIST

Ronin recently disclosed that its network was hacked on March 23, 2022 resulting in a crypto heist attack.

The Ronin network announced the heist attack news on its Twitter handle on March 29, 2022. The tweet stated  that crypto hackers exploited $625 million in Ethereum and USDC coins, which have been considered the largest ever DeFi exploit in history.

The Ronin Network’s Background

The Ronin network is a layer two Ethereum blockchain designed to ensure the smooth operation of games such as Axie Infinity, a non-fungible (NFT) online game.

Sky Mavis, the company in charge of Axie Infinity, owned by Trung Nguyen, created the Ronin network.

The network, on the other hand, allows players to exchange the digital coins earned  in Axie infinity and other decentralized applications.

How Did the Ronin Crypto Heist  Happen?

The crypto heist attack happened when the Ronin team discovered and received a report that one of its users was unable to withdraw 5,000 Ethereum from its bridge.

According to the Ronin network, the cryptocurrency hackers got access to five private keys used in validating transactions from the network. On March 23, 2022  the hackers were able to forge false withdrawals, causing the Ronin bridge to lose 173,600 Ethereum and 25.5 million USDC in two transactions. Currently, majority of the funds are still in the hacker’s wallet, but the identity of the hackers is still unknown.

Furthermore, analysts from our partner,  Blockchain Intelligence Group discovered that the vast majority of the funds stolen had been transferred to popular exchanges such as Huobi, Crypto.com and FTX.  

In response to this, Huobi exchange has assured that they would assist axie infinity.  “Huobi will fully support @AxieInfinity as it deals with the aftermath of the attack and theft on its Ronin chain,” the platform tweeted. “Any stolen crypto assets that have been discovered to have traversed our exchange and related networks will be dealt with expediently.”

In another news, Axie Infinity co-founder, Aleksander Larsen, attributed the  Ronin crypto heist  to a case of social engineering attack combined with human error from December, 2021.

Action Taken to Protect Ronin Network Users After the Crypto Heist

The Ronin network took to its Twitter handle on March 29, 2022  to address its followers. According to a tweet, the Ronin Network  is  currently working with law enforcement officials, investors, forensics cryptographers like Chain Analysis and Binance Labs to ensure all lost funds are recovered or reimbursed.

In the latest development, the layer two blockchain network released two new features to the Ronin wallet.

The first feature allows users  to import just a private key to the Ronin wallet. The second features is the ledger support. The Ledger support allows  users to  use the ledger hardware wallet with the Ronin Chrome extension.

Also, Axie Infinity co-founder, Aleksander Larsen, added that their internal network is undergoing a critical forensics investigation to ensure there’s no continuing threat. 

OFAC Includes an Address included in the Ronin Crypto Heist to the SDN List

On April 14, 2022 OFAC added a new ETH address to Lazarus Group’s SDN entry as an identifier: 0x098B716B8Aaf21512996dC57EB0615e2383E2f96. According to a tweet post by Chainalysis, the address was involved in the Ronin hack, having received 173,600 ETH and 25.5 million USDC from the Ronin Bridge smart contract during the attack.

Conclusion

The Ronin Network Crypto Heist which happens to be the largest crypto heist in history is a wake-up call for  Cryptocurrency Exchanges. This implies that with the increase  in cybercrimes, cryptocurrency exchange hacks, wallet hacks etc, cryptocurrency businesses firms and exchanges must be more aware of cyber security practices and implement compliance policies to protect its users.

A&D Forensics also provides training services for cryptocurrency exchanges on how to stay safe and keep bad actors away from their platforms. In addition,our subscribers are updated on  regulatory insights and criminal cases happening in the ecosystem within the week.

Leave a comment

Certified Cryptocurrency Investigation(CCI) Training

Learn how cryptocurrency related transactions, crimes are tracked, traced and prosecuted.

Step 1 of 2
Certified Cryptocurrency Investigation Training

Learn how cryptocurrency related transactions, crimes are tracked, traced and prosecuted.

Step 1 of 2
CERTIFIED CRYPTOCURRENCY COMPLIANCE SPECIALIST(3CS)

Learn how compliance could be a competitive advantage to your exchanges with all your AML, CTF, KYC and OFAC requirements.

Step 1 of 2
Smart Contract Audit

To speak to us regarding Smart Contract Audit, please fill the form below. We will make every attempt to respond to you as soon as possible

Call Direct: +2348036180089 | +2349095503040

Section Divider

Get in touch

To speak with us as regards our services, to make comments and ask questions, please fill the form below. We will reply as soon as possible.

Call Direct: +2348036180089 | +2349095503040

LEAD FACILITATOR – CRYPTOCURRENCY INTUITION

Onyekelu Chioma is a passionate and professional teacher with expertise on blockchain and cryptocurrency education. She is a renowned blockchain advocate in Africa with the belief that there are so many career opportunities to be leveraged on in the Blockchain Industry.

Chioma is the Head of Academic and Training, the Crypto Bootcamp Community, and a member of Stake holders in blockchain technology association of Nigeria (SiBAN).

Chioma’s passion for fourth industrial revolution technology has helped her hold key strategic positions in various private sectors, regulating the way for blockchain adoption in the continent of Africa.

As an experienced teacher, blockchain educator, and a cryptocurrency trading coach, she has trained a lot of students and assisted them in identifying their innate skills which enabled them to carve a niche so as to become experts in their chosen blockchain career.

She’s currently a Crypto Forensic Intern at A&D Forensics and undergoing her Masters studies in Blockchain and Cryptocurrency at University of Nicosia

LEAD FACILITATOR – CRYPTOCURRENCY INVESTIGATIONS

Adedeji is a Forensic Investigation Practitioner and CertifiedBlockchain/Cryptocurrency Forensic
Investigator (CFE, CCI, CCFI & Reactor Certified) with more than Fifteen years of experience across few banks within the Nigeria Financial Sector and educator in Corporate workplace settings, Deji is uniquely qualified and involved in forensics analysis of Financial Infractions, Cryptocurrency crimes and designing plans that works for Government, Regulators, Law enforcement. He was appointed by SEC Nigeria as Member Virtual Asset and Fintech Regulatory framework drafting Committee, He is a member of Global Digital Finance’s KYC/AML working group in France and a member of the Industry led Thinktank that worked on and came out with FATF cryptocurrency Travel rule InterMessaging Standard for Virtual Assets (IVMS101) to help combat money laundering and terrorism financing using cryptocurrencies around the globe.
His law enforcement training efforts on new money and cybercrime have seen him train many law enforcement agents in various countriesn i.e Nigeria Police, Nigeria Army CyberWarfare command, Zambia Financial Intelligence Unit, Zambia Central Bank and more.
He is Chainalysis Sole Africa Investigative Partner helping law enforcement investigate criminal organizations using cryptocurrency to conceal illiccit activities across Africa, he is also a training Partner for Blockchain Intelligence Group based out of Canada.

Cryptocurrency Investigation Training

Learn how cryptocurrency related transactions, crimes are tracked,
traced and prosecuted.