A group of investigators, led by Chainalysis’s Crypto Incident Response team, has recovered almost 10% of funds worth $30 million stolen from the well-known Ronin hack.
The Ronin network lost $622 million (the value from the time of the announcement) to hackers on 23 March 2022. The funds were allegedly stolen by a North Korean hacker group that goes by the name Lazarus. The hack had involved the bridge connecting Axie Infinity and Ethereum being exploited.
This is the first incident ever when crypto stolen by the North Korean troublemakers was recovered. The recovery could be a sign that hackers will no longer find encashing ill-gotten proceeds easily.
How did they trace the stolen funds?
As the hackers had used centralized setups, they left behind a footprint, which the recovery team was able to use to trace them. Chainalysis teamed up with law enforcement to recover the stolen funds.
Chainalysis’s response team utilized advanced techniques to follow the funds to specific cash-out zones. The liaison with law enforcement ensured that the traced funds were quickly frozen and eventually seized.
The numbers involved
At the time of the hack, the stolen crypto assets—1,73,600 wrapped ETH and 25.5 million USDC—were valued at $522 million. By the time the hack was made public, the value went up to $622 million, making the Ronin exploit one of the largest DeFi hacks. Today, the stolen funds are valued at $307 million (courtesy of the crypto winter).
The Ronin network (bridge) was closed in June following the attack. All affected users were compensated with funds from Axie DAO, but that burnt a 56,000 ETH hole in the DAO’s treasury. The recovered funds will now be used to return the DAO treasury amount.
FAQs
How much money has been lost in crypto hacks?
1. Over $3.8 billion was lost in cryptocurrency hacks in 2022, marking a significant increase from $3.3 billion in 2021.
2. In April 2021 alone, hacks, scams, and exploits resulted in cryptocurrency losses totaling $103.7 million.
3. The first major crypto hack occurred in 2011 when Mt. Gox lost 25,000 bitcoins, valued at approximately $473 million.
4. In Q1 2023, losses from crypto hacks and exploits were lower than in the same periods of 2022, with approximately $1.3 billion and $950 million, respectively
Has anyone recovered stolen crypto?
1. Recovering stolen crypto is challenging but not impossible.
2. The Cyber Helpline suggests that once virtual currency is stolen, it’s difficult to recover, emphasizing preventive measures like secure storage.
3. TransitNet highlights that recovery is possible, as seen in the U.S. reclaiming cryptocurrency from ransomware hackers, but success varies.
4. Filing a report with local law enforcement, and providing theft details, and transaction information is recommended for recovery efforts
Which incident is the biggest cryptocurrency hack?
1. Over $3.8 billion was lost in cryptocurrency hacks in 2022, marking a significant increase from $3.3 billion in 2021.
2. In April 2021 alone, hacks, scams, and exploits resulted in cryptocurrency losses totaling $103.7 million.
3. The first major crypto hack occurred in 2011 when Mt. Gox lost 25,000 bitcoins, valued at approximately $473 million.
4. In Q1 2023, losses from crypto hacks and exploits were lower than in the same periods of 2022, with approximately $1.3 billion and $950 million, respectively
Have crypto hackers grossed over $3 billion from 125 hacks so far this year?
Yes, crypto hackers have grossed over $3 billion from 125 hacks so far this year. The data from Chainalysis reveals that hackers achieved this milestone, with at least $718 million stolen in October alone. This record-breaking figure surpasses the previous year’s total, making 2022 a record-setting year for crypto hacks. The information is corroborated by various sources, including Fortune India, which reports that blockchain intelligence firms confirm the hackers’ success in accumulating over $3 billion across 125 hacks.
