axie: A $625 million-heist has left crypto community baffled!

Synopsis

Axie developer Sky Mavis announced in a blog post that the exploit resulted in losses of over 173,600 Ether and 25.5 million USD Coins, a stablecoin pegged to the US Dollar, total worth more than $625 million by then.

New Delhi: Recently, the crypto world was rocked by one of the largest hacks in Web3 history with about $625 million exploit from Ronin – the blockchain to the wildly popular Axie Infinity play-to-earn game.

Axie developer Sky Mavis announced in a blog post that the exploit resulted in losses of over 173,600 Ether and 25.5 million USD Coins, a stablecoin pegged to the US Dollar, total worth more than $625 million by then.

Recently, there has been a sharp spike in the digital thievery and hacks, parallel to the interest in the cryptocurrency. The new age technology is hosting a number of tech savvy thieves.
Presented By

Did you Know?

India’s top fashion designers including Manish Malhotra, Raghavendra Rathore, Anamika Khanna and Pankaj & Nidhi

View Details »
Ganesh Kompella, Venture Partner, Tykhe Block Ventures said that crypto sentiment in general remains unaffected with such hacks. However, Axie and the gaming sector might be heading for a leg down.

“If we look deeper, the number of hack attempts on the chain bridges are increasing. Bridges are high-value targets for attackers, bridge security is more important than ever,” he added.

Indeed, the crypto community has expressed befuddlement at the attacker’s laundering strategy. However, they suggest investors to be more cautious and protective for their investments.

It is important for crypto traders to have complete control of their tokens. One can never rely completely on an exchange or any service provider for the tokens they hold, said Domendra Verma, Co-founder, RocketX Exchange.

Market experts said that the hack happened and was undetected for almost 6 days, till some random trader looked at the chain data. The team could have built better protection and detection mechanisms, they say.

“There have been numerous crypto hacks starting from 2009, amounting to billions of dollars and most of them have been traced back to the culprits in the past,” said Verma.

With the help of professional cryptographers and firms, it is possible to track the culprits, he adds. There are now several companies out there who help with prevention as well as tracking of such events, including BitsCrunch and Chainalysis.

Immediately after the attack, however, observers noted that the hacker used centralized exchanges to fund the address that launched the attack , and that they have been depositing thousands of ETH to various exchanges.

One interesting theory revolving around the move suggests that such exchanges have KYC verification mechanism and the deposits can be used to discover the hacker’s identity and forfeit the funds. However, not everyone seconds it.

The guy had a brilliant game theory – send to Centralized Exchange (CEX) and short the Axie token, said Kompella. “He did not take into account the time it would have taken for the news to get out. The rumour is, he got liquidated.”

“Contrary to the idea that these hacks are bad, I believe this is a process that we need to go through, get done with so as an industry in whole we could evolve towards day to day crypto adoption,” Kompella said.

Presented By

Crypto Returns Calculator

0x1inchAaveAirSwapAlgorandAlien WorldsAmbire AdExAnkrAugurAvalancheAxie InfinityBancorBand ProtocolBasic Attention TokenBinance CoinBitcoinBitcoin CashCOTICardanoCeler NetworkChainlinkChilizChromiaCivicCompoundCosmosCurve DAO TokenDFI.moneyDIADaiDashDecentralandDigiByteDogecoinEOSElrondEnjin CoinEthereumEthereum ClassicFantomFetch.aiFilecoinGASGalaGolemHarmonyIOSTIndian RupeeInternet ComputerKyber NetworkLitecoinLivepeerLoopringMakerMetalMy Neighbor AliceNEMNEONKNNanoNumeraireOmiseGOPax DollarPolkadotPolygonPower LedgerQuantstampQuarkChainRepublic ProtocolRequestRippleShiba InuSolanaStatusStellarStorjSushiSwipeSynthetix Network TokenTerraTetherTezosThe GraphThe SandboxTheta FuelTheta NetworkThresholdTronTrue USDUSD CoinUniswapVeChainWavesZilliqaaelfdistrict0xiExec RLCyearn.finance

Bought onCurrent Value Buy

Pick the best companies to invest

BECOME AN ETPRIME MEMBER

Source

Updated: 03/31/2022 — 13:00