Friday, October 7, 2022

Axie Infinity Raises $150M Reimbursement Fund After $625M Hack

Following an attack on the Axie DAO and Ronin network which was realized last week, the Vietnamese network behind the Axie Infinity video games, Sky Mavis, has raised a total of $150 million which it intends to employ in reimbursing the affected users. 

The funding round, supported by a collaboration between the Axie Infinity and Sky Mavis balance sheet funds, was led by Binance and enjoyed participation from key investors like Andreessen Horowitz, Animoca Brands, and many others. Despite the intended reimbursement of affected users, the Ronin bridge and Katana Dex which were closed are yet to be re-opened.

Axie Infinity’s hack was reported last week by a user who had tried to withdraw 5,000 Ethereum (ETH) from the network but was experiencing difficulties. During the investigation, a huge loss of 173,600 Ethereum and 25.5 million USD Coins (USDC), performed in different transactions, was recorded.

Amounting to $625 million in crypto, the scam was executed through the use of falsified secret codes and misuse of a back door loop on the Sky Mavis platform. Ever since then, Axie Infinity has started enforcing security structures to reclaim its stolen funds and also avoid a recurrence. Chainalysis was put in charge of scrutinizing the confiscated funds.

The deadline attached for the total recovery of the funds is two years after which Axie DAO might have a ruling on the next strategies to engage. Not only did Binance lead this round, but as a way of assisting the Ronin network, it has also opened up its exchange platform to Axie Infinity users to conduct Ethereum transactions almost for free.

Heightened Security Protocols for the Ronin Network

Axie Infinity claims to have learned its lessons from the hack and has promised that all affected users will get their crypto funds back in their wallets. The Ronin bridge will be opened as soon as it is ascertained that all security protocols are established and necessary auditing has been performed.

CEO of Sky Mavis, Trung Nguyen, has affirmed that the number of validators for a withdrawal would be increased from 5 to 21 as against 8 which was earlier announced. He also mentioned the launch of Axie Infinity: Origin which is stipulated to go live soon.

Victoria Nye
A Blockchain columnist who is enthusiastic about developing a network interface between the real world and the cryptosphere.

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