In a surprising turn of events, the hackers behind the Ronin Bridge exploit have returned the stolen Ethereum (ETH) valued at approximately $10 million. These whitehat hackers will be rewarded with a $500,000 bounty under the network’s Bug Bounty Program.
The Ronin Bridge, an Ethereum sidechain crucial for the popular play-to-earn game Axie Infinity, reported that the hackers returned the stolen ETH. However, around $2 million worth of USDC stablecoin remains unrecovered. To show appreciation for the hackers’ gesture, the network has rewarded them with a substantial bounty.
The whitehat hackers identified a critical vulnerability, which led to the network conducting a thorough audit before reopening the bridge for public use. Ronin Bridge’s structure is set to undergo significant changes as validators work on implementing a more secure solution.
“We have received the ETH (~$10M) and expect the USDC to be returned soon. The Bug Bounty Program will reward the whitehats with a $500K bounty. The bridge will undergo an audit before it is reopened. We are working with the Ronin validators to implement a new solution and will provide updates on our progress,” the network’s update stated.
The Ronin Bridge currently secures over $850 million worth of assets, which remained safe despite the recent attack. The exploiters managed to siphon $12 million due to robust safeguard measures, including a bridge limit that prevents large withdrawals. This system effectively curbed further losses during the exploit.
The Ronin network identified the cause of the attack as a flaw introduced by a recent bridge upgrade. The upgrade misinterpreted the required threshold of bridge operators’ votes needed to withdraw funds, leading to the vulnerability.
A detailed post-mortem of the incident is expected next week, which will outline the strategies to prevent such occurrences in the future. Bailey.ron, a key member of the project, highlighted that Ronin Bridge’s prominence and commitment to real consumer adoption make it a frequent target for attacks.
“Ronin is one of the few crypto projects achieving real consumer adoption. This attracts constant phishing attempts and unwanted attention. Despite this, Ronin is committed to rectifying mistakes and protecting its community and users. I am proud to contribute to this project and remain confident in the team’s ability to impact the gaming and overall crypto industry,” Bailey.ron commented.
This isn’t the first time Ronin Network has faced such challenges. In 2022, the network suffered a massive exploit where $615 million was stolen after the attackers used private keys to forge fake withdrawals. This incident was one of the largest attacks in decentralized finance (DeFi) history.
The recent developments underscore the ongoing security concerns in the DeFi space. The Ronin (RON) token has seen a 2% decline in the past 24 hours, while the Axie Infinity (AXS) token has dropped by 1%.
The Ronin Network’s quick response to the latest attack and the engagement of whitehat hackers reflect its proactive approach to security. The network’s willingness to reward ethical hackers highlights the importance of collaboration in strengthening blockchain security.
As the network undergoes an audit and transitions to a new operational structure, the community remains optimistic about its future. The commitment to continuous improvement and transparency is vital in maintaining trust and resilience in the DeFi ecosystem.
By addressing vulnerabilities and implementing robust security measures, Ronin aims to protect its users and assets, ensuring the long-term success of its platform and the broader crypto community.
