Ronin Network successfully recovered approximately $10 million in digital assets lost to an MEV exploit on August 6. According to a recent announcement, ethical hackers returned around 4,000 Ethereum taken from Axie Infinity’s Ronin Bridge through a Maximum Extractable Value (MEV) bug.

MEV refers to the maximum value that miners or validators can extract from ordering transactions without permission. This concept, often described as an “invisible tax,” is widely discussed within the crypto community.

The Ronin Network stated that the ethical hackers, who returned the funds, would receive a $500,000 reward as part of a bug bounty. Compensating ethical hackers for identifying vulnerabilities is a common practice in the web3 space, encouraging security experts to help fortify decentralized finance protocols.

To prevent similar incidents in the future, the project plans to audit its bridge and implement a new system for its cross-chain transaction terminal.

“We aim to shift operation of the bridge away from the current structure. We will be working with the Ronin validators to onboard a new solution and will provide updates on this as the work progresses,” the team said.

Update: The ETH (~$10 M) has been returned, and it is expected that the USDC will be returned later today. We thank the white hats for their vigilance and integrity. The Bug Bounty Program will reward the white hats with a $500,000 bounty. The bridge will undergo an audit before it is fully operational again.

Previous Ronin Hacks

The Ronin Network and its bridging service have faced significant challenges over the years. In March 2022, the North Korean hacker group Lazarus stole $600 million from the side chain, marking one of the largest crypto hacks in history.

In February 2024, criminals stole $9.7 million from Axie Infinity co-founder Jeff “Jihoz” Zirlin. Despite these setbacks, the cross-chain bridge has managed to recover and even secured a listing on Coinbase. Industry leaders like Binance also stepped in to support the network and assist in reimbursing users.

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