The post Ronin Bridge Hack Exposes $10M Vulnerability in Ethereum and USDC Security appeared on BitcoinEthereumNews.com.

The Ronin Bridge experienced a $10 million exploit on August 6 due to a flawed upgrade deployment. Erroneous configuration of validator voting thresholds facilitated unauthorized withdrawals. While the majority of the funds were successfully recovered, the breach emphasizes the critical importance of security in blockchain networks. Discover how a faulty script led to a $10 million security breach on the Ronin Bridge and learn about the crucial lessons for blockchain security going forward. Examining the August 6 Ronin Bridge Exploit On August 16, Verichains, a reputed blockchain security company, shed light on the Ronin Bridge hack that occurred on August 6. The exploit, valued at $10 million, stemmed from a buggy upgrade script. This script incorrectly set the validator voting threshold to zero, which permitted users to withdraw funds sans the requisite signatures. The critical mistake was the developers’ omission to initialize a crucial variable, paving the way for a malicious actor, aided by an MEV bot, to siphon off over $10 million in digital assets, including Ethereum (ETH) and USD Coin (USDC). Details of the Exploit The Ethereum (ETH) market showed resilience, trading at $2,600.75 with a slight intraday spike of 0.22%. At the same time, the 24-hour volume reached $12,209,926,439. Meanwhile, USD Coin (USDC) maintained its peg at $1.00, with a significant market cap of $34,838,535,046 and $5,141,560,579 in 24-hour volume. Although a significant portion of the stolen funds was reclaimed, the incident underscores the inherent risks linked to upgradeable smart contracts. The Ronin Network, which hosts the popular game Axie Infinity, confirmed the exploit was due to misinterpreting the required validator vote threshold post-upgrade. The Impact of the Ronin Bridge Hack On August 6, the Ronin Network witnessed a breach in which attackers made off with approximately $9.8 million in ETH and nearly $2 million in USDC.…

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Filed under: News - @ August 17, 2024 7:13 am