Axie Infinity is in the news again, this time with a dramatic episode involving a hack of its co-founder Jeff “Jihoz” Zirlin. Two of his personal wallets have been victims of a hack that has left Zirlin without less than $10 million in Ethereum (ETH).
In this report, we will explore the details of this incident, its impact on Axie Infinity, and the implications for the cryptocurrency market.
Axie Infinity co-founder suffers hack: Analysis and details
In an official statement, Zirlin confirmed the attack on his personal wallets, clarifying that it is not related to the Ronin chain itself, but rather to the Ronin Bridge. Ronin, a blockchain designed specifically for gamers, is the basis of Axie Infinity, the famous NFT game. Despite the severity of the incident, Zirlin stressed that the security of the Ronin chain was not compromised and that the problem was limited to its two affected wallets.
Zirlin explained that the private keys to his wallets were leaked, and this incident is unrelated to the operations of Sky Mavis, the company behind Axie Infinity. Despite the adversity, Zirlin reaffirmed his commitment to the mission of bringing economic freedom to Internet users, starting with gamers.
This has been a tough morning for me.
— Jihoz.ron 🦌 (@Jihoz_Axie) February 23, 2024
Two of my addresses have been compromised.
The attack is limited to my personal accounts, and has nothing to do with validation or operations of the Ronin chain.
Additionally, the leaked keys have nothing to do with Sky Mavis operations.…
Laundering of stolen tokens
Once in possession of Zirlin’s ETH, the attackers carried out a maneuver to “launder” the tokens using Tornado Cash, a tool that hides the origin of the transactions. This act not only demonstrates the sophistication of cybercriminals, but also raises questions about security and privacy in the world of cryptocurrencies.
It is essential to note that, unlike a previous incident in 2022 that directly affected the Sky Mavis network, this time the vulnerability appears to lie solely with Zirlin’s private keys. The Ronin network has since taken steps to strengthen its cybersecurity and prevent future attacks.
Hacked or not hacked? @Ronin_Network
— PeckShieldAlert (@PeckShieldAlert) February 23, 2024
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0x39F817976C51A91b60145feBad81067e69713105
0xA4017DE6460bD63a77404dd2C2344D6135eD13b2 https://t.co/WQxaY9n5OR pic.twitter.com/5KURCJAW77
Impact on Axie Infinity and AXS token
Although Axie Infinity is not directly linked to this hack, the story recalls another similar incident two years ago that negatively impacted the platform. In March of that year, a similar attack compromised private keys on the Ronin Bridge, resulting in the loss of 173,600 ETH and 25.5 million USDC.
Despite the severity of that incident, Axie Infinity has kept its native token, AXS, relatively unscathed. However, it is crucial to note that AXS price has seen significant ups and downs since then, currently trading 95% below its all-time highs.
