Zirlin provided further clarification, specifying that the attack was directed specifically at his personal accounts and emphasized that it was not connected to the functionality or security measures of the Ronin chain itself.
Jeff “Jihoz” Zirlin, co-founder of both Ronin and Axie Infinity, has reported a significant breach involving two of his wallets, resulting in the theft of approximately $9.7 million worth of Ethereum.
Initially, the funds from the compromised wallets, associated with Ronin Bridge v2, were divided and transferred to three separate wallets. Subsequently, they were channeled through the Tornado Cash Mixer, a tactic aimed at obfuscating the origin and traceability of the stolen funds.
Security Alert: Hacker Targets Zirlin’s Wallets, Steals Various Cryptocurrencies
On-chain analyst Lookonchain has sounded the alarm after detecting a breach targeting two of Zirlin’s wallets. This security breach led to the compromise of various cryptocurrencies, including 3.2 million RON, 282.32 WETH, 160,000 PIXEL, 2.76 million SLP, 2,042 USDC, and 164 AXS.
Following the compromise, the perpetrator swiftly executed transactions to exchange the stolen assets for 3,249 ETH. To further obfuscate the trail, the ill-gotten gains were then deposited into Tornado, a decentralized privacy solution. This series of actions underscores the sophistication of the attack and the importance of heightened security measures within the cryptocurrency ecosystem to protect against such incidents.
Zirlin utilized platform X to verify the hack, acknowledging that it had been a challenging morning for him due to the compromise of two of his addresses. He clarified that the attack targeted his personal accounts and stressed that it was unrelated to the operational aspects or validation processes of the Ronin Chain. Despite the setback, Zirlin reassured his followers of his safety and expressed confidence in overcoming the situation.
Despite the compromise of Zirlin’s wallet by the hacker, Aleksander Larsen, a fellow co-founder of Ronin, provided assurance that the integrity of the Ronin Bridge remained intact.
Larsen elaborated that the Ronin Bridge had undergone thorough auditing and was furnished with a safeguard mechanism designed to halt operations should there be an abnormally large withdrawal. Furthermore, Larsen clarified that the attack did not stem from any vulnerabilities within Sky Mavis operations or the Ronin chain itself.
Blockchain investigator PeckShield shed light on the nature of the hack, attributing it to a “wallet compromise” wherein the hacker gained unauthorized access to transfer funds.
Comparative Analysis: Recent Crypto Hacks and Their Aftermaths
The recent attack on Zirlin’s wallet follows a significant breach in the Ronin network two years ago, during which the Ethereum bridge was compromised, resulting in the theft of $625 million worth of cryptocurrency. This incident was attributed to the notorious North Korean hacker group Lazarus, with the root cause identified as insufficient decentralization within the Ethereum gaming sidechain at that time.
Following the breach, authorities were able to recover approximately $30 million in cryptocurrency laundered through centralized exchanges. In response, Sky Mavis, the parent company of Ronin, pledged to fully compensate all affected users for their losses.
In a separate incident, Ripple co-founder Chris Larsen fell victim to a wallet hack on February 1st. However, Binance intervened swiftly, freezing the $4.2 million worth of XRP stolen in the $112 million hack. Unlike the hacker targeting Zirlin, the perpetrator of the Larsen hack did not utilize a cryptocurrency mixer like Tornado, enabling Binance to trace and block a portion of the stolen funds.
