Axie Infinity Co-Founder’s ETH Wallets Hacked, $8 Million Loss Reported

    Key Takeaways

    • PeckShield warned of a “whale wallet” breach on the Ronin Bridge, with the hacker taking 3,248 ETH.
    • Axie Infinity co-founder and COO Aleksander Larsen stated that the Ronin network was not compromises

    In a recent turn of events, Jeff “Jihoz” Zirlin, one of the founders of Axie Infinity, faced a major security breach involving two of his personal Ethereum accounts on the Ronin network. The breach resulted in a substantial loss of approximately $8 million.

    The breach came to light when Ancilia, Inc., a web3 security firm, alerted the Ronin Network after noticing an unusual withdrawal of over 2,790 Ethereum from Zirlin’s accounts. The withdrawn funds were swiftly transferred to three different addresses and subsequently deposited into Tornado Cash, a platform commonly used by hackers to mask the origins of funds.

    In response to these developments, Aleksander Larsen, co-founder of Ronin Network, reassured the public about the network’s integrity. Larsen emphasized the robust security measures in place within the Ronin ecosystem, particularly regarding the Ronin bridge, which had previously faced security challenges. This assurance came amidst concerns raised by PeckShieldAlert, a blockchain investigation firm, regarding a compromise involving a “whale wallet” on the Ronin Bridge, resulting in the unauthorized transfer of 3,248 Ethereum.

    Larsen reiterated the network’s resilience to breaches and its capability to halt operations in the face of suspicious withdrawal activity. Zirlin echoed Larsen’s sentiments, confirming that the breach only affected his personal accounts and did not compromise the Ronin blockchain or operations conducted by Sky Mavis, the company behind Axie Infinity.

    Zirlin took to social media to reassure the community, emphasizing that the leaked keys were unrelated to Sky Mavis operations and underscoring the implementation of strict security protocols across all chain-related activities. Despite the setback, both Zirlin and Larsen expressed their determination to overcome the challenge and maintain the network’s safety.

    Upon investigation, PeckShield attributed the hack to a “wallet compromise,” enabling the unauthorized transfer of funds from Zirlin’s accounts. The diverted Ethereum was subsequently split and redirected to multiple wallets before being routed through Tornado Cash for anonymization.

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