Axie Infinity Co-founder Loses $9.7M in Ether in Major Wallet Hack
Summary:
Jeff “Jihoz” Zirlin, a co-founder of Axie Infinity and Ronin Network, suffered a cyber theft of $9.7 million in Ethereum (ETH) from his two crypto wallets. The stolen funds were moved via Tornado Cash. PeckShield, a blockchain security company, identified the unauthorized activity. Ronin Network's co-founder Aleksander Larsen refuted system vulnerabilities, attributing the breach to a personal wallet hack. Although specific details of the breach were not disclosed, it is speculated that a leak of private keys allowed unauthorized wallet access. In another instance, Binance froze $4.2 million worth of XRP stolen from Ripple's co-founder Chris Larsen.
Jeff "Jihoz" Zirlin, a co-founder of Axie Infinity and Ronin Network, fell victim to a major cyber attack. Approximately $9.7 million worth of Ethereum (ETH) was stolen from two of his digital wallets and moved via Tornado Cash. On February 23, PeckShield, a blockchain security firm, noticed an abnormal withdrawal from a bulky wallet on the Ronin Bridge, with 3,248 ETH ($9.7 million) stolen. Ronin Network's co-founder, Aleksander Larsen, responded swiftly stating that their system is highly secured, implying a personal wallet breach instead.
Larsen maintained that the Ronin infrastructure, earlier audited, would automatically pause in case of substantial offbeat transactions. Later, Zirlin verified the cracking of his two private wallets. He refuted any faults within the Ronin chain or their operations, stating robust safety measures were in place. According to PeckShield, the mishap resulted from a compromised wallet from which illegally outbound funds were transferred.
Zirlin never delved into the specifics of the hack; his statement suggests a leak of private keys from the two wallets, allowing unauthorized access. The stolen funds were moved to Tornado Cash, an often-used service by cybercriminals to obscure the origin and traceability of cryptocurrencies. PeckShield’s investigation suggests that the stolen Ether was initially split across three different wallets before being moved to Tornado Cash.
In an unrelated incident, Binance, a major crypto exchange, halted $4.2 million worth of XRP (Ripple) stolen from Ripple's co-founder Chris Larsen, part of an overall $112 million hack on January 31. The significant difference was that Larsen's hacker did not use any anonymous crypto services or decentralized exchanges, making it easier for Binance to track and freeze the funds.
Published At
2/23/2024 9:27:05 AM
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