Ronin Network Suffers $9.85M Exploit, RON Token Unfazed

Security breach raises questions about Ronin's vulnerability as investigation unfolds.

The Ronin Network, an Ethereum sidechain, faced a significant security breach on August 6, with a Maximal Extractable Value (MEV) bot extracting 4,000 ETH, valued at $9.85 million. Despite the exploit, the network’s native RON token defied expectations, surging over 10% to $1.39 amid a broader market uptrend.

Aleksander Larsen, Ronin’s co-founder, announced a temporary pause of the network to thoroughly investigate the breach. Blockchain security firm Cyvers initially reported the exploit, indicating that the MEV bot was responsible for siphoning the substantial sum. Despite this, Larsen assured the community that the $850 million secured by the network remains safe.

Interestingly, experts from blockchain security firm Peckshield have suggested that a white hat hacker might be involved in the incident. White hat hackers typically exploit vulnerabilities to identify and rectify security flaws, often returning stolen funds voluntarily or for a reward. Larsen acknowledged these reports, stating that the team was investigating feedback from white hat hackers regarding the potential MEV exploit linked to Axie Infinity, a popular play-to-earn game on the Ronin Network.

In a related development, Cyvers noted that the deployer address of the Axie Infinity contract had attempted to communicate with the presumed white hat hacker via a message that read, "Hey, thanks a lot for white hat saving user funds today. Can we chat over Blockscan chat?"

However, the incident has reignited concerns about the security of the Ronin Network. Market analyst ZachXBT pointed out previous significant breaches, including a 2022 exploit involving 173,600 Ethereum worth over $615 million, and a $9.7 million hack of the platform’s co-founder, Jeff Zirlin, in February 2024. ZachXBT remarked, “These attacks just show mismanagement, if anything. The first and second hack were Lazarus Group private key compromises.”

Despite the security lapses, the RON token’s resilience amid the crisis has surprised many. It reflects a broader optimism in the crypto market, which continues to attract investors despite periodic setbacks. As the Ronin team works to address the current breach and bolster its security protocols, the community remains watchful for updates on the investigation and any potential return of the stolen funds.

photo source / Blockonome