Ronin’s lost assets are on the move. There has been some movement on the blockchain address that was linked to the Axie Infinity Ronin bridge hack earlier this month.
Several transactions have been made from the suspicious Ethereum address in the last several hours. The first was the transfer of 1,000 ETH worth about $3.5 million to a different address.
Several additional 100-ETH transactions followed, all of which went to the Tornado Cash Ethereum mixing service. On Monday morning, Chinese crypto expert Colin Wu spotted the changes.
Hackers move the funds in stealth
Criminals infrequently utilize major exchanges since most of them now have stringent KYC (know-your-customer) processes. Even companies that do not supply fiat conversions have been forced to comply with international regulations.
Malicious actors are more likely to try to conceal transactions many times before eventually cashing out into fiat elsewhere. According to the founder of Immutable Vision, this might lead to stricter rules and penalties for genuine investors.
“When private blockchains fail, they serve as ammo for tougher rules, affecting genuine retail and institutional investors,” says the author.
This is precisely what has occurred to traditional banking, which has become a maze of regulations and bureaucracy for the everyday person.
Ronin Bridge suffered major losses
In late March, the Ronin Bridge, which allows cross-chain transfers to and from the Axie Infinity environment, was hacked for about $610 million. The firm behind Axie Infinity, Sky Mavis, has recently indicated that it is entirely committed to compensating the victims of the massive crime.
The hack demonstrates how vulnerable bridges are too hostile parties. According to experts, they are powered by untested computer code, leaving them vulnerable to hackers. Furthermore, the names of the validators/nodes who execute the transactions are unknown, making it difficult to trace down suspects.
A developer, Kelvin Fichter, thought the Ronin Bridge was overly reliant on validator-based bridges, which he called a “fundamental mistake.” The network’s “minimum monitoring and alerting” mechanism, according to Fichter, gave the hackers a good foundation to start their attack.