Ethereum Theft from Ronin Network Wallets
Jeff “Jiho” Zirlin’s Personal Wallets Targeted in Security Breach
Jeff “Jiho” Zirlin, co-founder of Ronin and the popular NFT game Axie Infinity, experienced a significant security breach as approximately $9.5 million worth of Ethereum was siphoned from his personal wallets on the Ronin gaming network. The stolen Ethereum was then laundered through Tornado Cash, a service known for its ability to obscure the origins of cryptocurrency funds.
Details of the Theft
Funds Routed Through Tornado Cash Mixer
Security firms PeckShield and Webacy reported that around 3,250 ETH was transferred from Ronin network wallets to three separate Ethereum addresses, before being mixed through Tornado Cash. Zirlin confirmed via Twitter that his personal accounts were compromised during the attack but emphasized that the breach did not impact the Ronin chain’s operations or validation processes.
Sky Mavis and Ronin Network Affirm Security Measures
No Impact on Ronin Chain or Sky Mavis Operations
In response to the incident, Sky Mavis, the company behind Axie Infinity and the Ronin network, and fellow co-founder Aleksander “Psycheout” Larsen assured the community that the hack was isolated to Zirlin’s personal wallets and did not reflect vulnerabilities in the Ronin network or its Ethereum bridge. Larsen highlighted the bridge’s robust security, backed by multiple audits and precautionary measures against large withdrawals.
Market Response and Historical Context
RON Price Fluctuates Following News of the Hack
The revelation of the theft briefly affected the price of Ronin (RON), which saw a sharp decline of over 13% shortly after the funds were withdrawn. The token has since regained some of its value. This incident occurs two years after a major breach of Ronin’s Ethereum bridge, which resulted in a $622 million loss attributed to the North Korean hacker group Lazarus. Since then, significant steps have been taken to enhance security and decentralization within the network.
Sky Mavis has committed to refunding all users affected by the previous bridge hack, with authorities recovering approximately $30 million in stolen cryptocurrency.
The recent hack of Zirlin’s wallets underscores the ongoing challenges and risks associated with cryptocurrency and digital asset security, even as platforms continue to fortify their defenses against such threats.
