Ronin Network Recovers $10M ETH, USDC Recovery Underway

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Through a successful recovery effort following a recent cyber attack, the Ronin Network has managed to retrieve around $10 million’s worth of Ethereum (ETH). At present, they anticipate the return of the US Dollar-tied stablecoin USDC later today.

Ronin Network Recovers $10M ETH

In their latest announcement, the Ronin Network team successfully retrieved the stolen Ether (ETH) due to the assistance from ethical hackers. They are expecting the USDC to be returned later today. As a gesture of gratitude, Ronin Network will reward the ethical hackers with a $500,000 bounty for discovering the vulnerability and returning the funds.

Before resuming asset transfers via the Ronin bridge (which connects Ethereum to the Ronin sidechain), an audit will first be conducted. This ensures the bridge’s security and helps identify any potential vulnerabilities or damage that might occur in the future.

Update:
As a seasoned cybersecurity professional who has spent years navigating the complex world of blockchain and digital assets, I appreciate the diligence and integrity displayed by the “white hats” who have returned the ETH (approximately $10 M) to its rightful owner. Their actions are a testament to their commitment to ethical hacking and responsible disclosure, traits that are essential for maintaining trust within the community. I am particularly impressed because I’ve seen firsthand the challenges of identifying vulnerabilities in smart contracts and ensuring they are resolved promptly.
The bridge will undergo an audit before it is…
— Ronin (@Ronin_Network) August 6, 2024

The Ronin Network’s crew is collaborating with validators to develop a fresh operational structure for the bridge, and we’ll share additional details as the work progresses.

Problem Behind the Security Breach

According to the report, ethical hackers detected an attack early on Tuesday, which they believe is a MEV exploit. The Ronin Network team subsequently acknowledged that this exploit resulted from a bug introduced during their recent bridge update.

The issue caused the bridge to incorrectly determine the necessary number of votes for fund withdrawal, leading to unapproved transactions taking place.

According to Adrian Hetman from Immunefi, a company specializing in blockchain security, these bridge upgrades often introduce new potential risks. If not properly safeguarded, these can become vulnerable, as demonstrated by past attacks on blockchain bridges. Therefore, Hetman emphasized the importance of implementing robust security precautions during such upgrade processes to minimize similar incidents.

Ronin Bridge Hack Details

In a recent cyberattack on the Ronin Network, approximately 4000 Ether and $2 million worth of USDC were stolen, along with other assets totaling around $12 million. However, by implementing certain precautions that limited withdrawals to a specific amount, some loss was mitigated. This incident occurred following an attack on the Ronin bridge in March 2022, which is now recognized as one of the largest cryptocurrency hacks ever, with the thieves making off with $622 million. The Lazarus hacking group has been identified as the culprits behind this massive heist.

Despite concerns raised by some users, the Ronin network emphasized the safety of their bridge, praising its swift response and rectification efforts. With over $850 million in managed assets, it’s clear that stringent security precautions are crucial.

In line with this, the team from Ronin Network has mentioned they will publish an extensive account of the recent incident next week. This report will delve into the details of what happened and the measures they’re implementing to avoid similar incidents down the line.

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2024-08-06 20:48