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Sky Mavis Set Aside $150 Million As Compensation To Victims Of Axie Infinity’s $625 Million Ronin Hack Attack

The parent company of Axie Infinity, Sky Mavis, has recently announced the raising of a $150 million funding round spearheaded by Binance to help settle users who lost their funds during the massive heist on Axie Infinity.

The $625 Ronin hack is considered the most significant hacking incident that has seen Axie Infinity’s platform compromised by hackers. Some of the contributing partners to the fundraising include Animoca Brands, Dialectic, Paradigm, Accel, and others.

The raised funds will complement the existing cash from Sky Mavis to reimburse the heist victims who lost funds to the attack on the Ethereum-based sidechain hosting the Axie Infinity play-to-earn game.

However, once the settlement is completed and the significant security updates on the Ronin protocol are met, which the company admits will take a couple of weeks, the Ronin Bridge will be reopened.

Meanwhile, Binance is currently providing liquidity to Ronin users, as they can easily withdraw and deposit ETH freely and without hassle.

Binance Commitment to Security

According to Binance CEO Chanpeng Zhao, the leading crypto exchange company is committed to boosting the security of crypto assets so that the digital ecosystem will continue to thrive and mature; safety should be of paramount importance.

Zhao further noted that the work put in place by Sky Mavis is commendable, and the Sky Mavis team’s commitment to the growth of the Axie Infinity project is what Binance shared with them. Binance will serve as the launchpad for the project to continue meeting its aim through technical support and high-tech security for the platform.

Therefore Binance Launchpad is where projects like Axie Infinity can raise funds to meet their goals and get the support and services they need to boost their growth in their respective ecosystems.

Binance remains a significant crypto exchange firm that integrates the Ronin network directly into its platform, allowing users to move funds seamlessly to their Ronin wallets. Binance’s statement signals the beginning of a fruitful partnership with Sky Mavis.

Sky Mavis Takes on the Crypto Heist

In an announcement to address the cause of the attack, Sky Mavis attributed the security breach to a “validator” in the Ronin protocol, which makes it relatively more accessible for the hacker to navigate through.

The hacker successfully guessed five of the nine security keys designed to validate the platform, which is enough to process the withdrawal of funds from the Ronin network to another wallet.

To forestall further occurrences, the company plans to increase the number of validator keys to 21 in the coming months to prevent another compromise.

Sky Mavis recorded a $1.3 billion in revenue in the last twelve months through February, with Axie Infinity having a separate $1.6 billion in “community Treasury,” according to Bloomberg’s report.

As Axie Infinity grows with each passing day, more players are gracing the platform, and investors are coming in for partnership.

The play-to-earn gaming industry is now a mainstay of the crypto industry.

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