Hackers Stole Cryptocurrency Worth Over $600 Million from a Digital Ledger

Cyber Crime

In a huge digital cash robbery announced Tuesday, hackers stole bitcoin worth over $600 million from a digital ledger used by gamers of the famous online game Axie Infinity.

Cryptocurrency has grown in popularity, as have its prices, but the money has also become a tempting target for tech-savvy crooks.

The attack on Ronin Network’s blockchain netted 173,600 ether and $25.5 million in stablecoin, a digital commodity tethered to the US dollar, according to the company.

The haul was worth $545 million when it was stolen on March 23, but it was worth nearly $615 million based on Tuesday’s pricing, making it one of the greatest crypto thefts ever.

“The majority of the stolen monies are still in the hacker’s wallet,” Ronin wrote in a blog post announcing the crime.

According to Sky Mavis, the creator of the battle and trade game Axie Infinity, the security flaw was detected on Tuesday after a user was unable to withdraw ether.

Ronin claimed the incident was still being investigated, but that hackers obtained private “keys” to extract digital payments.

“We understand that confidence must be earned, and we are using the most sophisticated security methods and protocols to prevent future intrusions,” Ronin added.

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“We’re collaborating with law enforcement, forensic cryptographers, and our investors to ensure that no user cash are lost.”

Players in Axie Infinity fight with colourful blob-like Axies and are awarded with “Smooth Love Potion” (SLPs), which may be exchanged for cryptocurrency or cash, or invested back into the game’s virtual planet Lunacia.

According to Sky Mavis, the Philippines accounts for over 35% of Axie Infinity traffic and the majority of its 2.5 million daily active players. Its popularity is fueled by high English proficiency, a strong gaming culture, and extensive smartphone usage.

Players must initially purchase at least three Axies in order to play the game.

An Axie is a non-fungible token (NFT) having a specific set of skills and features. They, like NFT artwork, are stored on the blockchain, which is a decentralised digital ledger that cannot be altered.

Other players can purchase, sell, or rent axes. They can also be bred to produce new Axies with higher value.

Jennifer Thomas
Jennifer Thomas is the Co-founder and Chief Business Development Officer at Cybers Guards. Prior to that, She was responsible for leading its Cyber Security Practice and Cyber Security Operations Center, which provided managed security services.