Hackers have stolen cryptocurrencies worth over $600 million last week. They breached Ronin Network, a gaming-focused blockchain, and extracted cryptocurrencies. The hacking is believed to be the second-highest hack in the cryptocurrency space so far.
Ronin, an Ethereum-linked blockchain platform for non-fungible token-based video game Axie Infinity, in a blog post said on Tuesday that there has been a security breach, revealing that the theft was conducted earlier last week but the company discovered the theft on Tuesday.
Second-Largest Crypto Heist
The hackers extracted 1,73,600 ether tokens and 25.5 million USD coinsâworth nearly $620 on Tuesday. The attackers used hacked private keys, faking two fake withdrawals last week.
The platform was earlier unaware of such things but it started investigating only after a user reported that he could not withdraw 5,000 ether tokens on Tuesday morning, reported Forbes.
Based on the value of the cryptocurrency at the time of theft (about $540 million), the heist is the second-highest hack ever in the crypto space.
The biggest Crypto hack was identified last year when block-chain based platform Poly Network was hacked last year, resulting in the theft of cryptocurrencies worth over $600 million at the time of the hack.
Later the funds were retrieved after blockchain firms and crypto exchanges started tracking identity clues on the blockchain.
What is Ronin Doing After Hack?
Ronin has reached out to other security teams of various exchanges and blockchain firms for help. Currently, the platform has suspended all transactions to prevent possible attacks and strengthen its firewalls.
The company has also revealed that most of the cryptocurrencies will still be in the hackers' wallets.
"As of right now users are unable to withdraw or deposit funds to Ronin Network. Sky Mavis is committed to ensuring that all of the drained funds are recovered or reimbursed, the company said Tuesday.
According to blockchain analytics firm Chainalysis, last year nearly $14 billion illicit cryptocurrency addresses received a 79% jump from the previous year and also an overall high for crypto-related crimes.