Ronin Network exploited for $9.8M in ETH, white hat hacker suspected

Ronin Network has lost $9.8 million worth of Ether in a potential exploit, adding to the rising number of cryptocurrency hacks in 2024.

Ronin Network, one of the most popular gaming blockchains, lost 3,996 Ether (ETH) tokens worth over $9.8 million.

However, the exploit may originate from a white hat hacker, or ethical hacker who is performing exploits to find the vulnerabilities in a crypto protocol, according to an Aug. 6 X post by PeckShield.

After discovering a vulnerability and proving the code is bugged, white hat hackers return the stolen funds. If the Ronin attacker turns out to be such an ethical hacker, the funds could soon be safely returned.

It is not uncommon for hackers with malicious intent to return stolen funds. Earlier in May, a hacker returned $71 million worth of stolen crypto to the victim after the high-profile incident brought significant attention and revealed the hacker's potential IP.

Did a white hat MEV bot steal the $9.8M?

Adding a note of optimism to the event, the exploit was seemingly caused by a maximal extractable value (MEV) bot, a software tool used by validators to analyze arbitrage opportunities across decentralized finance (DeFI).

Since MEV bots automatically implement arbitrage strategies, it is not uncommon for these bots to accidentally exploit a loophole in a protocol.

A closer look at the $9.8 million transaction on the Ronin bridge reveals that it was executed by MEV bot “0x4ab."

The MEV bot subsequently sent a small part of the funds, or 3.9 Ether tokens, to wallet “0x952,” also known as “beaverbuild,” blockchain data shows.

MEV bots have also been responsible for the $7.6 million Rho Markets exploit in July. The protocol recovered all the missing funds within a week.