Ronin Network Halts Operations After Whitehat Suspected $11.3M Exploit

PeckShield Uncovers the Exploit

The breach was first reported by blockchain security firm PeckShield. They revealed that a Maximal Extractable Value (MEV) bot withdrew Ether (ETH) and USD Coin (USDC) worth $11.33 million from the Ronin Bridge. 

The nature of these transactions remains uncertain, with speculation about whether they were executed by malicious actors or ethical/whitehat hackers aiming to expose vulnerabilities.

White hat hackers often exploit vulnerabilities to demonstrate security flaws, subsequently returning the stolen funds. In this case, Ronin's exploit could lead to funds being returned soon, reducing its impact.

Ronin Network's Response

"Earlier today, we were notified by white-hats about a potential exploit on the Ronin bridge," the network posted on X. 

They confirmed the bridge was paused 40 minutes after the first on-chain action was detected. The pause was necessary to prevent further exploitation while the team investigated the breach.

MEV Bot Involvement

Blockchain data reveals that the MEV bot “0x4ab” executed the transaction, withdrawing a substantial amount of funds. A portion of the funds, about 3.9 Ether, was sent to a wallet known as “beaverbuild.” 

Historical Context

The exploit at that time involved hacked private keys used to forge fake withdrawals from the Ronin Bridge. The attacker exploited a backdoor through the gas-free RPC node, bypassing the network's security measures.