Zirlin Reports $9.7M Loss in Wallet Hack

TL;DR
1.Hacker compromises Zirlin's wallets, conceals trail with Tornado Cash Mixer.
2.Zirlin confirms hack on personal accounts; Ronin Bridge remains secure.
3.Echoes of past hack on Ronin; Lazarus group involved.
4.Chris Larsen's hack differs; Binance freezes stolen XRP.

Ronin and Axie Infinity co-founder Jeff “Jihoz” Zirlin has reported a significant loss of approximately $9.7 million worth of Ethereum due to the hacking of two of his wallets.

Wallet Compromise and Asset Movement

On-chain analyst Lookonchain identified the attack on Zirlin's wallets, with the hacker compromising various assets, including RON, WETH, PIXEL, SLP, USDC, and AXS. The attacker then exchanged these assets for ETH and deposited them using Tornado Cash Mixer to conceal their trail.

Confirmation and Assurance

Zirlin confirmed the hack on X, expressing the challenge of having two of his addresses compromised. He clarified that the attack targeted his personal accounts and did not affect the operations of the Ronin Chain.

Despite the wallet compromise, Ronin co-founder Aleksander Larsen reassured users that the Ronin Bridge remained secure. Larsen highlighted the bridge's audit and safety mechanisms, emphasizing that the attack was not linked to vulnerabilities within Sky Mavis operations or the Ronin chain.

Previous Ronin Hack

This incident echoes a previous hack on Ronin, where bad actors absconded with $625 million worth of cryptocurrency. The breach, attributed to the Lazarus group, was a result of decentralization issues within the Ethereum gaming sidechain at the time. Authorities managed to recover a portion of the stolen funds, ensuring compensation for affected users.

Comparison with Larsen's Hack

In contrast to Zirlin's case, where the hacker used a crypto mixer, Ripple co-founder Chris Larsen experienced a hack without such obfuscation. Binance successfully froze the stolen XRP, preventing further illicit activity.

Crypto Hacking Reminder

Zirlin's loss underscores the persistent threat of hacking in the crypto space, despite assurances of security measures. The incident highlights the importance of robust security protocols and ongoing vigilance to mitigate risks associated with digital asset management.