The theft was discovered nearly a week later.
on Tuesday and froze transactions on the Ronin bridge, which allows depositing and withdrawing funds from the company’s blockchain.
Sky Mavis says it’s working with law enforcement to recover 173,600 Ethereum and 25.5 million USDC from the culprit, who withdrew it from the network on March 23rd. The attack focused on the bridge to Sky Mavis’ Ronin blockchain, an intermediary betweenand other cryptocurrency blockchains like Ethereum. Users could deposit Ethereum or USDC to Ronin, then purchase non-fungible token items or in-game currency, or they could sell their in-game assets and withdraw the money.
According to Sky Mavis, an attacker used hacked private security keys to compromise the network nodes that validate transfers to and from the Ronin blockchain. That let the attacker quietly withdraw large quantities of Ethereum and USDC. The transfer was discovered today — nearly a week later — when another user attempted to withdraw 5,000 Ethereum through the bridge.
Validator nodes are a feature of proof-of-stake blockchains like Ronin, which are less energy intensive than proof-of-work systems like Bitcoin and Ethereum. The nodes review new transactions to confirm that their inputs and outputs match and that authorization signatures are valid, rejecting any transactions that don’t conform. Using a smaller number of nodes is faster and more efficient — but as the hack shows, it can create security risks if a majority of the nodes are compromised.
Sky Mavis says it will increase the required number of nodes to eight for transactions, and it will reopen the Ronin bridge “at a later date” once it’s certain no more funds can be drained.
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