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- Sky Mavis, creator of Axie Infinity, has made an announcement to gather $125 Million to offer compensation to Ronin hack victims.
- Latest funds will be integrated with cash from Sky Mavis’ balance sheet to reimburse each user who got inflicted by this attack.
- Sky Mavis also elaborated the reason behind this hack in its announcement, featuring the breach to a minor validator cluster.
Additional Funds For Compensation
Sky Mavis, Vietnamese gaming studio made an announcement that it has raised $150 Million in funding led by Binance, a crypto exchange, to reimburse folks who lost their money during recent attack on Ronin bridge where the hacker bagged $625 million worth of crypto assets, which was the biggest cryptocurrency heist to this date.
Accel, Paradigm, a16z, and Animoca Brands are also among the participants taking part in the fundraiser.
These funds will be integrated with cash from balance sheet of Sky Mavis to compensate every user who was impacted by this attack. The organization is planning to open Ronin Bridge again after conducting audits and security upgrades, which will take some time.
The Ronin Bridge Attack
Sky Mavis also addressed the reason behind the hack in its announcement, featuring the breach to a tiny validator cluster which made it simpler to break into the network, enough to allow them to transfer the loot from Ronin Bridge into an external wallet. Organization stated that it is thinking of extending total validators from 5 to 21 in upcoming 3 months to prevent future threats.
The organization yielded $1.3 Billion in revenue in a year, through February and Axie Infinity itself has a “community treasure” equalling $1.6 Billion, as per a news website. In the attack, 56,000 Ethereum ($179,914,000 as per the current value) were snatched by the hacker during this attack.
As per Sky Mavis, funds will stay uncollateralized as the organization is working with law enforcement to get them back. Axie Infinity community is required to host a vote to authorize liquidating any of the treasury funds for reimbursing the users, which elaborates why Sky Mavis is going towards a fundraiser involving hard cash and utilizing its own balance sheet.
Axie Infinity Sales Soared By 350%
Following this announcement, Axie Infinity sales surged by almost 400% in previous 24 hours.
As this article was being written, Axie Infinity’s indigenous token was trading at a market value of $54.59 in previous 24 hours.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
