Hackers Stole More Than $600M from Blockchain Project

JUL 21 2022·Updated JAN 23 2023

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The Facts

A hacker last week stole roughly $625M from Ronin - a decentralized finance ("DeFi") network - according to Sky Mavis, the Vietnam-based game developer behind the popular crypto game "Axie Infinity." The breach was discovered Tues.
Verge
Axie Infinity allows users to earn tokens while playing, which may be redeemed in exchange for the cryptocurrency Ethereum.
Vice
Because Ethereum transactions can be costly, Sky Mavis developed the Ronin network as a second-level blockchain project that allows lower-cost transactions.
Vice
The hackers targeted a weakness in the security apparatus, making off with roughly 173,600 Ethereum tokens (currently worth ~$600M) and 25.5M USDC, another cryptocurrency whose value is pegged to the US dollar.
Verge
Sky Mavis is working with law enforcement to try and recover the stolen funds, which included earned income and deposits made by its users.
Verge
This is just the latest in a series of high-profile crimes that have struck the emerging and largely unregulated DeFi sector.
NBC

Sources Split

LEFT

CENTER

RIGHT

ESTAB
CRIT

CENTER

PRO
ESTAB

The Spin

Narrative A

DeFi is building entire new worlds that combine the fun of game play with the very real stakes of commerce. Although there's enormous potential to unlock economic value, these half-real, half-virtual worlds are dangerous and they demand regulation.

Fortune

Narrative B

All great industries are built on the back of trial and error. Hackers expose vulnerabilities, and responsible tech pioneers are constantly working to strengthen these innovative new forms of economic exchange and empowerment. Most of these hacks are limited to crosschain bridges, which are inherently weak nodes in the system.