Ronin Sidechain Restarted

Three months after the massive hack, the developers restarted the Ronin Network sidechain involved in the Axie Infinity blockchain game and reimbursed users for the funds they lost.

According to the team, all wETH and USDC owned by Ronin Network users are now fully backed by 1:1 ETH and USDC on the Ethereum network. In addition, all users were compensated.

As for the 56,000 wETH stolen from the Axie DAO treasury, the project team hopes to be able to recover this money with the help of law enforcement. But if this does not happen within the next two years, the DAO will hold a vote and decide what to do next.

According to the development team, the codebase of the project was checked by Verichains.

From now on, the Ronin cross-chain bridge has a completely new design with a system that allows you to turn off the decentralized application in emergency cases. According to them, this will increase its security and minimize the damage from suspicious transactions.

On March 23, 2022, the Ronin sidechain was hacked and hackers withdrew over $625 million in various crypto assets.

Sky Mavis, the company behind the creation of the blockchain game Axie Infinity, promised to compensate the losses of users who suffered from a hacker attack on the Ronin sidechain. The team reported that the hackers used social engineering to gain unauthorized access to the assets.

Later, Sky Mavis COO Alexander Leonard Larsen said that the approximate period for a partial return of assets would be about two years. He added that the company is working with various law enforcement agencies to trace and return tokens, mainly Ethereum. Larsen did not disclose details of the investigation.

And sometime later, the Office of Foreign Assets Control of the US Department of the Treasury (OFAC) added to the sanctions list the cryptocurrency address to which the crypto assets stolen from the Ronin sidechain were received. The same address is allegedly associated with the hacker group Lazarus.

To prevent similar exploits in the future, the Ronin team has implemented a massive security update. They had hoped to restart the sidechain by the end of May, but the timing has shifted slightly since then.

On June 21, the developers reported that the protocol was audited by Certik specialists, but they made several comments that still need to be corrected. According to them, it was the conduct of the check that delayed the restart of Ronin.

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