Hackers stole approximately $625 million in cryptocurrency from the popular NFT video game Axie Infinity
Axie Infinity, the play-to-earn NFT-based game, was involved in a security breach that led to US$625 million worth of cryptocurrency being stolen. The cryptocurrency was stolen from the Ronin Network, the blockchain that the Pokémon-like deck-building battler is built on.
The culprit exploited the link between the Ronin Network and Axie Infinity, specifically the way the Ronin Network is used to facilitate the conversion of in-game assets into cryptocurrency and money, along with hacked private keys to conduct fraudulent withdrawals.
The culprit withdrew 173,600 ETH and 25.5 million USDC across two transactions, and the breach was only discovered a week later when another user tried to withdraw 5,000 ETH through the same system. Following the discovery, the Ronin Network and Sky Mavis, the operator of Axie Infinity, froze transactions on the system while investigations are ongoing, effectively blocking off the depositing and withdrawing of funds from the blockchain.
These incidents resulted in the companies behind those blockchains beefing up security while recovering the funds to varying degrees of success. The aftermath of this latest massive cryptocurrency heist remains to be seen. For now, this incident serves as another example of how decentralised finance isn’t exactly secure or safe in its current state, and those still thinking about getting involved should tread carefully.
