Ronin Network Recovers Stolen Funds

Summary of the Hacking Incident

On August 9, 2024, a major incident occurred on the Ronin Network blockchain, capturing the attention of the entire crypto community. White-hat hackers discovered a security vulnerability and were able to withdraw 4,000 ETH and 2 million USDC, equivalent to $12 million. This amount, being the maximum possible for a single transaction, helped prevent even greater damage.

The hackers, acting within the bounds of the law, immediately notified the Ronin Network team of the discovered vulnerability. In response, the Ronin bridge was promptly shut down for 40 minutes to prevent further attacks and minimize potential risks. Although the full investigation is still ongoing, it has already been determined that the vulnerability arose from a recent system update that was implemented through the governance process.

The issue stemmed from the bridge incorrectly interpreting the required quorum of operator votes needed to authorize transactions, which allowed unauthorized entities to withdraw funds. The Ronin Network team is currently working diligently to correct this critical error and plans to conduct a thorough audit of the changes before relaunching the bridge.

Moreover, Ronin Network has announced plans to replace the current bridge structure with a new solution developed in collaboration with validators. This update aims to significantly enhance the platform's security and prevent similar incidents in the future.

Notably, the white-hat hackers who discovered the vulnerability returned the stolen funds in full and will receive a $500,000 reward for their contribution to improving the platform's security. Ronin Network also confirmed that user funds were not affected, and in the event of any losses, they would be fully compensated.

This incident reminded the community of a previous attack on Ronin Network that occurred in March 2022. At that time, a group of hackers linked to North Korea stole a record $625 million, some of which was later recovered through the efforts of law enforcement agencies.