Sky Mavis, creators of play-to-earn game Axie Infinity, announced Wednesday that has raised $150 million to reimburse users who lost funds during the $600 million Ronin hack, protocol that bridges ETH and Axie Infinity.
The funding round was led by cryptocurrency exchange Binance. A16z, Paradigm, Animoca Brands and Dialectic also participated. It is worth noting that these last two organizations were recently announced as new validators for the network.
“The round combined with Sky Mavis balance sheet funds will be used to ensure that all users affected by the Ronin hack are refunded,” Sky Mavis emphasized.
The company also said that the Ronin Network bridge will reopen once it undergoes a security update and several audits. According to Sky Mavi this could take several weeks.
In addition, the company said it is implementing “strict internal security measures” to prevent future attacks.
Meanwhile, Binance is supporting the Ronin Network by providing ETH withdrawals and deposits to Axie Infinity users.
About the Ronin Attack
According reported by Cryptheory, on March 23, the Ronin validator nodes from Sky Mavis and the validator nodes Axie DAO were compromised.
The attack resulted in 173,600 Ether (ETH) and 25.5 million USDC drained from the Ronin bridge.
“We take full responsibility for the breach. The root cause of the breach was the small set of validators which made it much easier to compromise the network. As we raced through popular adoption, we made some tradeoffs that ended up leaving us vulnerable to this type of attack. It’s a lesson we learned the hard way,” Sky Mavis said.
Sky Mavis will grow the pool of validators to 21 validators over the next three months, which will be split across multiple stakeholders including partners, community members and long-term allies.
Also according to the statement, the 56,000 ETH committed from the Axie DAO treasury will remain under-guaranteed. That’s because Sky Mavis works with law enforcement to recover the funds.
But if the funds are not fully recovered in two years, Axie DAO will vote on the next steps for the treasury.
Binance supports Sky Mavis
About Binance support, Exchange CEO Changpeng Zhao highlighted the importance of working together:
“For the global ecosystem to continue to thrive and mature, it is imperative that we work together, especially when it comes to security, which is our fort. We have seen tremendous work and growth from the Sky Mavis team since working together on the Axie Infinity project on Binance Launchpad. We firmly believe that Sky Mavis will bring much value and growth to the larger industry.”
According to Sky Mavis CEO Trung Nguyen, the company is committed to refunding all lost funds. And, with the support of Binance and other leaders, you will be able to expand the pool of validators from 5 to 21.
“While we address this issue, we are also focusing on the future, starting with tomorrow’s release of Axie Infinity: Origin. We are also excited to collaborate with Binance NFT on future projects.”