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$10M Lost in Wallet Hack; Founders Assure the Security of the Chain

Published 23/02/2024, 10:06
$10M Lost in Wallet Hack; Founders Assure the Security of the Chain
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Coin Edition -

  • Co-founder of the firm behind Axie Infinity lost over $10 million in a wallet hack.
  • PeckShield revealed that a significant “whale wallet” lost the funds.
  • Founders assured that the blockchain is intact and only a wallet was compromised.

Jeffrey Zirlin, co-founder of Sky Mavis, the firm behind the Axie Infinity game, confirmed that two of his personal wallets were compromised in a hacking incident on Friday.

However, Zirlin assured the public that the Ronin sidechain, which hosts Axie Infinity, remained unaffected by the security breach.

“The attack is limited to my personal accounts, and has nothing to do with the validation or operations of the Ronin chain,” said Zirlin. Additionally, the co-founder explained that the leaked keys have “nothing to do” with Sky Mavis operations, reassuring the public that chain-related activities have “strict security measures.”

Blockchain security firm PeckShield revealed that a significant “whale wallet” was the target of the attack, speculating if Ronin Bridge had been hacked. Approximately 3,248 ETH, valued at $9.7 million, was illicitly withdrawn from the Ronin Bridge and subsequently transferred to the crypto mixer Tornado Cash.

Aleksander Leonard Larsen, Zirlin’s counterpart and co-founder at Sky Mavis, also commented on X, stating that the Ronin Bridge remained secure and that the compromised wallet was an isolated incident, akin to occurrences on other blockchain networks.

“The bridge itself has top security, been through many audits and goes on pause when too much is being withdrawn,” added Larsen.On January 29, PeckShield reported that 2023 witnessed over 600 major hacks in the crypto space, resulting in around $2.61 billion in losses. Despite this, crypto hacks and scams showed a 27.8% decrease in 2023 compared to 2022.

The post $10M Lost in Wallet Hack; Founders Assure the Security of the Chain appeared first on Coin Edition.

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