While the federal government figures out its role in regulating cryptocurrency, and consumers continue to try to get in on the action but have lost millions [view related posts here, here, and here], what is being dubbed as the largest crypto hack to date ($625 million) happened last week.

According to Ronin Network, a provider of online gaming services and which suffered the loss, the exploit affected validator nodes for Sky Mavis, the publisher of the Axie Infinity game and Axie DAO.

According to Ronin, an attacker “used hacked private keys in order to forge fake withdrawals.”

In a post dated on March 31, 2022, Ronin stated, “While the investigations are ongoing, at this point we are certain that this was an external breach. All evidence points to this attack being socially engineered, rather than a technical flaw.”

The funds are still in the threat actor’s wallet. Ronin stated on March 31, 2022, that “As of right now users are unable to withdraw or deposit funds to Ronin Network. Sky Mavis is committed to ensuring that all of the drained funds are recovered or reimbursed.” That’s a lot of money to reimburse.

Photo of Linn Foster Freedman Linn Foster Freedman

Linn Freedman practices in data privacy and security law, cybersecurity, and complex litigation. She is a member of the Business Litigation Group and the Financial Services Cyber-Compliance Team, and chair’s the firm’s Data Privacy and Security Team. Linn focuses her practice on…

Linn Freedman practices in data privacy and security law, cybersecurity, and complex litigation. She is a member of the Business Litigation Group and the Financial Services Cyber-Compliance Team, and chair’s the firm’s Data Privacy and Security Team. Linn focuses her practice on compliance with all state and federal privacy and security laws and regulations. She counsels a range of public and private clients from industries such as construction, education, health care, insurance, manufacturing, real estate, utilities and critical infrastructure, marine and charitable organizations, on state and federal data privacy and security investigations, as well as emergency data breach response and mitigation. Linn is an Adjunct Professor of the Practice of Cybersecurity at Brown University and an Adjunct Professor of Law at Roger Williams University School of Law.  Prior to joining the firm, Linn served as assistant attorney general and deputy chief of the Civil Division of the Attorney General’s Office for the State of Rhode Island. She earned her J.D. from Loyola University School of Law and her B.A., with honors, in American Studies from Newcomb College of Tulane University. She is admitted to practice law in Massachusetts and Rhode Island. Read her full rc.com bio here.