Ronin Network: What a $600m hack says about the state of crypto

Image source, Getty Images

Thousands, if not millions, of people could have lost money in the second largest hack in history.

$615m was stolen from Ronin Network, a key platform that powers the popular mobile game Axie Infinity.

Dan Rean is a 20-year-old from Wiltshire. He said he had lost about $500. I have friends who are in a worse position.

Jack Kenny said that he was down about $10,000.

$600m is a very big portion of all the assets in this network, and I don't think people fully understand the significance of this hack.

A man from the US east coast says he has lost $8,000, but adds that there are people who may have lost their life savings after saving up digital coins.

Image source, Axie Infinity

In the game, players fight cartoon pets.

The game is popular with millions of players around the world who want to win the game and collect the non-fungible token.

In the Philippines, playing has become a full-time and potentially lucrative job.

Sky Mavis is the parent company of the Ronin Network, which allows players to exchange their digital coins for other cryptocurrencies.

The company only noticed on Tuesday that a customer was unable to withdraw their funds, but it says a hacker transferred $540m worth of currency to themselves six days ago.

The price of cryptocurrencies has increased in value and is worth about $615m.

There have been a string of mass heists in the last year totalling over $2 billion.

The sequence of events around the hack tells us a lot.

Ronin Network says it is working with law enforcement officials, forensic cryptographers, and investors to make sure all funds are recovered or reimbursed.

It took its website offline and only put out one statement on its substack.

It has disabled comments on its company posts on social media, and the BBC has not responded to many requests for comment sent to company bosses.

Dan says he has not tried customer support because he knows it will be useless.

I have to wait to hear from them if it will be fixed, and I hope to get my money out. Dan explains that tHe same way that regular companies work, tHe same way that tHe same way that tHe same way that tHe same way that tThe same way that regular companies work, tThe same way that tThe same way

Image source, Retuers

Customers have not been told when they will get their money back.

It can take months or years for customers to be reimbursed for mass hacks.

David Canellis is a writer for Protos.

When you are dealing with entities that are handling more than half a billion dollars you would expect a little bit more avenues and openness to communication.

One of the primary tenets of the ecosystems is that anyone can launch their own projects, and there should be no barriers to this.

The hack started in November of 2016 when the user base grew too large.

The company said the influx of players caused user load which forced it to loosen security procedures.

In December, things calmed down, but it forgot to tighten its security, and the hackers took advantage of it.

The economist and author says that this is typical of the industry.

We have seen many hacks and exploits caused by carelessness and lack of concern for the safety of people's funds.

It is sometimes so anxious to loadsamoney or simply accommodate high demand that they put out badly designed and tested code, compromise security, or place too much reliance on infrastructure.

The figures are based on the dollar value at the time of the hack.

• $325m - Wormhole, February 2022
• $470m - Mt Gox, February 2014.
• $532m - Coincheck, January 2018
• $540m - Ronin Bridge, March 2022.
• $611m - Poly Network, August 2021

According to experts,cryptocurrencies is being seen as low hanging fruit by hackers.

Tom Robinson, of Elliptic, says that cryptocurrencies companies are huge honeypots for hackers.

If a hacker can get their hands on it, it is very difficult for anyone to recover it.

Mr Robinson said that it is attractive because it is possible to have huge pay days without having to worry about being blackmailed.

It is not known who is behind this latest hack, but it is not a case of cyber-criminals making money for themselves. State-sponsored hackers have been identified as the culprits behind some heists.

According to Chainalysis, North Korean hackers stole almost $400m worth of digital assets in at least seven attacks on cryptocurrencies last year.