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Axie Infinity Hack! Co-Founder Loses $9.7M in 3,248 ETH Heist

Axie Infinity Hack! Co-Founder Loses $9.7M in 3,248 ETH Heist

On Thursday night, a hack targeted the co-founder of Axie Infinity, resulting in the transfer of a significant amount of ETH to Tornado Cash. A blockchain investigator detected the suspicious activity and reported the compromised whale wallet via the Ronin bridge.

Nearly $10 million Regarding Stolen Money

The first to report on an alleged security breach over the Ronin Bridge was the Web3 security platform Ancilia. 2,790 ETH had been taken out and deposited into Tornado Cash.

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Aleksander Larsen, co-founder of Axie Infinity, clarified that neither the chain nor the Ronin bridge faced compromise. Larsen suggested that funds were “tornado cashed” from a compromised wallet, not through a breach in the bridge’s security.

Larsen pointed out that hackers typically transfer stolen funds to cryptocurrency mixers to obscure their transaction history, complicating tracing efforts. Despite being privacy tools, hackers often exploit them.

Over the past few years, US regulators have closely examined Tornado Cash. Sanctions and a ban list were imposed due to the mixing service’s failure to implement “effective controls.”

Larsen reassured the community that the Ronin bridge has undergone multiple audits and boasts “top security.” Additionally, it is programmed to pause when large amounts are being withdrawn to prevent significant exploits.

After a whale wallet compromise, blockchain detective PeckShield responded to Sky Mavis’ co-founder, revealing a loss of 3,248 ETH, valued at $9.7 million.

The thief used three separate wallets in over a dozen transactions for the heist. To further complicate tracking, they transferred some money between the criminal wallets before depositing it into Tornado Cash.

Co-founder of Axie Infinity Addresses Hacked

Several X users expressed scepticism towards Larsen’s post, pointing out that the hacked wallet appeared to be under the control of the Ronin Network Team, even though the bridge was unhacked.

Co-founder of Axie Infinity Jeff “Jihoz” Zirlin declared on X (the old Twitter platform) that the two compromised wallets were his addresses and had nothing to do with the Ronin chain.

Zirlin noted that the exploit was unrelated to activities at Sky Mavis, the company that created Axie Infinity and that it happened due to “leaked keys.” Additionally, he clarified that the hack did not impact the Ronin chain’s operations or validation.

Zirlin, the co-founder of Axie Infinity, confirmed Larsen’s assertion regarding the chain’s security, guaranteeing stringent security protocols for all operations. The news of the exploit didn’t notably impact the price of AXS.

Zirlin used the opportunity to thank everyone who reached out to him during the trying time in the post. To bring “economic freedom to all internet users, starting with gamers,” he pledged to “keep pushing forward with every one of you on this magical journey.”

Hackers targeted prominent figures in the blockchain and cryptocurrency space in the past month. When Ripple made headlines on January 31, the token’s price briefly dropped after an alleged hack took over 213 million XRP, valued at $112.5 million.

Chris Larsen, a co-founder of Ripple, discovered the unauthorized withdrawal of money to his addresses. The Binance Team briefly tracked down and recovered some of the stolen funds.

AXS, AXSUSDT, Axie infinity
AXS is trading at $7.79 in the hourly chart. Source: AXSUSDT on TradingView.com

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