Axie Infinity co-founder lost $9.7 million in attack on cryptocurrency wallets – key information

• The co-founder of Axie Infinity lost $9.7 million in a hack of his two cryptocurrency wallets.
• The hacker took advantage of the wallet compromise, enabling the unauthorized transfer of funds from Jeff “Jihoz” Zirlin’s wallets.
• The attack was not due to security vulnerabilities in Ronin or Sky Mavis, and the private keys of the two wallets were leaked, allowing unauthorized access.
• PeckShield confirmed that 3,248 ETH were transferred to three different wallets and eventually ended up in Tornado Cash, used to anonymize funds.
• Unlike previous attacks, the Axie Infinity hacker Jihoza used cryptocurrency mixing services, making it difficult to trace, unlike the Chris Larsen hacking case.

Attack on Axie Infinity co-founder’s cryptocurrency wallets

Jeff “Jihoza” Zirlin, co-founder of Axie Infinity, was the victim of an attack on his two personal cryptocurrency wallets, resulting in the theft of $9.7 million worth of Ether. The attack has caused concern in the cryptocurrency community and sheds light on security issues in the cryptocurrency ecosystem. In the wake of the incident, blockchain researcher PeckShield reported that Jeff’s wallet was accessed via the Ronin Bridge, suggesting a hacking attack. However, Ronin Network co-founder Alexander Larsen defended the security of the Ronin Bridge, saying that it was most likely the wallet, not the bridge, that was hacked. Zirlin confirmed that the attack was not due to security vulnerabilities in Ronin or Sky Mavis operations, stressing strict security measures.

PeckShield’s investigation suggests that the compromise of the wallets’ private keys was the main reason for the hack, allowing the unauthorized transfer of funds. The attack on Axie Infinity wallets differed from other cases where hackers used anonymization services. Instead, the funds were sent to Tornado Cash, making it difficult to identify and prosecute the hackers.

Summary

The attack on Jihoz wallets from Axie Infinity underscores the urgent need to strengthen security in the cryptocurrency environment. The hacking of wallets, especially those of individuals associated with blockchain projects, raises questions about the security of private keys and underscores the need for further measures to protect digital assets from hackers.