$625M worth of ETH drained on Axie Infinity's Ronin Network

Post by jhugo » Wed, Mar 30, 2022, 2:12 AM UTC

em_te wrote: post #603

virtualritz wrote: post #553

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>> encryption has many, many actually useful and productive applications > So does crypto [...] I'd wager that this is a lie. Please name one. These systems are self referential. Great if all to do is speculate with value changes inside the system. Other use cases? In short: no one has come up with any solution to the oracle problem. As soon as you want to exchange anything crypto with anything but crypto (e.g. USD o…

>> So does crypto [...] > I'd wager that this is a lie. Please name one. Alibaba ran a Foreign Exchange service on top of crypto. I don't know if it is still running or not. It functioned like Western Union. Customers sent local currency to Alibaba, Alibaba bought crypto with that local currency and in another country sold that crypto for foreign currency and then deposited it into the foreign currency account.

Post by netheril96 » Wed, Mar 30, 2022, 2:14 AM UTC

saboot wrote: post #458

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This is exactly why crypto is such a disaster. Every week there is yet another scam where people losing their money. The feedback from crypto enthusiasts is well look at those idiots for putting their money into some scheme or you are not smart enough use this thing. Look "nobody" understands what you are talking about. These financial systems are inscrutable and the problem is getting worse. You are building systems…

You are neglecting to mention the great upsides in crypto currency. * Giving criminals and scammers the ability to exchange goods and services anonymously. * Providing a source of funding North Korea's nuclear weapons program * Allowing nation states to engage in global commerce despite sanctions because they won't stop killing innocent people * Convincing older and gullible people to give their money to someone they…

Post by DougMellon » Wed, Mar 30, 2022, 2:16 AM UTC

tshaddox wrote: post #292

jonny_eh wrote: post #254

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> 4. An attacker obtained 5 of 9 keys, which is the signing threshold. How?

> The attacker used hacked private keys in order to forge fake withdrawals. > The attacker managed to get control over Sky Mavis’s four Ronin Validators and a third-party validator run by Axie DAO. Easiest explanation: at least one Sky Mavis employee and one Axie Infinity employee who have access to those private keys got together and took all the funds. Perhaps it was only one employee; it's not clear to me what the…

Post by netheril96 » Wed, Mar 30, 2022, 2:19 AM UTC

easrng wrote: post #514

nwiswell wrote: post #501

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I think "very easy" is relative. How do you get the whole world to agree to participate in the blacklist (or even to be aware of it)? If you don't, then obviously it will remain possible to tumble/launder the coins. By comparison, if PayPal decides to freeze your account, that's it, the end, those funds are frozen unless and until you successfully run the corporate supplication gauntlet.

You don't need the whole world, just the exchanges. And and some ERC20 tokens can have addresses frozen by a central authority (ex. USDC and Circle, USDT and Tether, etc) which is why the attacker immediately sold the USDC for ETH on 1inch and Uniswap.

Post by bufferoverflow » Wed, Mar 30, 2022, 2:22 AM UTC

mabbo wrote: post #618

bufferoverflow wrote: post #331

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Not zero benefits. In your system run by people your money can be frozen or taken away without your consent. Recent example: peaceful protesters in Canada. There are also tons of examples, when scammers would reverse a good transaction after receiving the goods. Another benefit of some blockchains: incredibly low transaction fees. Another benefit: smart contracts. I don't understand why you need to straight up lie.

> Recent example: peaceful protesters in Canada As a Canadian, and a former Ottawa resident, I can assure you those were not "peaceful protestors". I had friends and family who had to leave the city to escape the unending noise, the harrassment by the 'protestors'. There were arson attempts, assaults, threats, and general disregard for the law. I've literally been a peaceful protestor in Ottawa (I was a student there…