Axie Infinity co-founder loses $9.7M in 3,248 ETH wallet hack

Crypto Wallet Hack in Web 3.0: Axie Infinity Co-Founder Loses $9.7 Million in Ether

In a recent cyber attack, Jeff “Jihoz” Zirlin, one of the co-founders of Axie Infinity and Ronin Network, had two of his crypto wallet addresses compromised. The hacker was able to steal approximately $9.7 million worth of Ether (ETH) and transfer it through Tornado Cash.

Blockchain investigator PeckShield first reported the hack on Feb. 23, noting that the hacker had made off with 3,248 ETH through the Ronin Bridge. However, Aleksander Larsen, another co-founder of Ronin Network, quickly responded by stating that the bridge itself has top-notch security and suspected that the hack was due to a compromised wallet instead.

Larsen also pointed out that the Ronin bridge had undergone an audit and is designed to pause if a large withdrawal is detected. Zirlin later confirmed that two of his personal wallets were indeed hacked, but emphasized that the attack was not a result of vulnerabilities within the Ronin chain or Sky Mavis operations. He stated:

“The root cause of the hack was a wallet compromise,” said PeckShield in an interview with Cointelegraph. This allowed the hacker to make unauthorized transfers of funds.

Web 3.0 vs Web 2.0: How They Differ

Web 3.0, also known as the decentralized web, is a new version of the internet that utilizes blockchain technology. Unlike Web 2.0, which is centralized and controlled by a few major companies, Web 3.0 is decentralized and gives users more control over their data and online interactions.

One of the key differences between Web 2.0 and Web 3.0 is the use of artificial intelligence (AI). While Web 2.0 platforms rely heavily on AI for data collection and personalization, Web 3.0 aims to use AI to empower individuals and create a more democratic online environment.

The concept of the metaverse, a virtual world where users can interact and transact with each other, is also closely tied to Web 3.0. While it is not a direct part of Web 3.0, the metaverse aligns with the principles of decentralization and user control that define Web 3.0.

Web 3.0 Blockchain Projects to Watch in 2022

As Web 3.0 continues to gain traction, more and more blockchain projects are emerging with innovative use cases and potential for growth. Some of the most promising Web 3.0 blockchain projects to watch in 2022 include:

  • Polkadot – a multi-chain network that enables interoperability between different blockchains
  • Filecoin – a decentralized storage network that allows users to rent out their unused storage space
  • Ethereum – the second-largest cryptocurrency by market cap and a pioneer in smart contract technology
  • Tezos – a blockchain platform that uses a self-amending governance system to improve scalability and security

With the continued growth and development of Web 3.0, we can expect to see even more exciting blockchain projects emerge in the coming years.

Chris Dixon’s Vision for Web 3.0

Chris Dixon, a prominent venture capitalist and co-founder of Andreessen Horowitz, has been a vocal advocate for Web 3.0. In his view, Web 3.0 will enable a more open and decentralized internet, where individuals have more control over their data and online interactions.

In a recent interview, Dixon stated that Web 3.0 will be “a new era of the internet, where people have more control over their data and can use it to create new kinds of applications and services.” He also believes that Web 3.0 will bring about a more fair and equal distribution of wealth and power, as it will allow individuals to directly monetize their contributions to the internet.

Hacker Leaks Private Keys and Uses Tornado Cash to Anonymize Funds in $112 Million Crypto Wallet Hack

A recent hack of two crypto wallets has raised concerns about the security of web 3.0 decentralized systems and the use of blockchain technology. According to a message from Axie Infinity co-founder Jeffrey Zirlin, the private keys of the wallets were leaked, allowing unauthorized access to his personal crypto funds.

Investigations by PeckShield have revealed that the hacker split the stolen 3,248 ETH into three different wallets before using Tornado Cash, a popular service for hiding the ownership and traceability of funds. This highlights the vulnerability of web 3.0 blockchain projects in 2022 and the need for stronger security measures.

Binance, a leading cryptocurrency exchange, was able to freeze $4.2 million worth of stolen XRP from Ripple co-founder Chris Larsen’s personal wallet, which was part of the $112 million hack. Unlike the Jihoz hacker who targeted Axie Infinity, Larsen’s hacker did not use crypto mixer services or decentralized exchanges, making it easier for Binance to track and block the funds.

These incidents showcase the differences between web 2.0 and web 3.0, with the latter being more decentralized and prone to hacks. As web 3.0 continues to evolve and expand, it is crucial to address these security concerns and implement stronger measures to protect users’ funds.

According to venture capitalist Chris Dixon, web 3.0 has the potential to revolutionize the internet, but it also brings new challenges and risks that must be addressed for its widespread adoption.

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