Binance, one of the largest cryptocurrency exchanges in the world, Axie Infinityannounced that they will lead the $150 million funding round from the developer of . As reported on the Binance blog, this funding round will be used to restore funds on Ronin Bridge, and users affected by the Ronin Validator Hack will be refunded.
Binance leads $150 million funding round for Sky Mavis (Axie Infinity)
In the Binance-led funding round, Sky Mavis’ Ethereum side-chain Ronin Network$150 million was raised to compensate the victims of the latest attack, which resulted in the withdrawal of $622 million from . This move will help the company deliver on its promise to reimburse everyone affected by the abuse.
Other companies in the funding round include the popular crypto gamer alongside tech venture capital firms a16z and Accel. The SandboxAnimoca, the company behind . Crypto investment firms Paradigm and Dialectic also contributed.
Sky Mavis and Axie Infinity will use this fund and the pool on their balance sheets to allow Ronin Network users to freely withdraw and deposit funds.
Meanwhile, the Ronin bridge, which allows users to transfer assets from Ethereum to the game, is not expected to be fully operational until it passes audits and security updates. According to Sky Mavis, this could take several weeks.
Once the bridge is rebuilt and operational, all users will be able to withdraw their funds. The 56,000 ETH hacked from the Axie DAO treasury will continue to be reallocated as Sky Mavis works with law enforcement to recover the funds. If the funds are not fully recovered within two years, the Axie DAO will vote on the next steps for the treasury.
What happened in the ronin attack?
Crypto The hack, one of the largest in history, took place on March 23 but was not discovered until March 29.
In a blog post, the Ronin team explained that the hackers used the “used to make two fraudulent withdrawals into the funds”.compromised private keysHe said they believed he had accessed through
According to the announcement, the project lost approximately $625 million (173,600 WETH/Wrapped Ethereum and 25.5 million USDC) after Sky Mavis’ Ronin validator nodes, as well as Axie DAO validator nodes, were seized and drained by a malicious actor last week.
This made the Ronin hack the largest decentralized finance (DeFi) hack in history, preventing the $611 Poly Network heist last August.
According to a press release from Sky Mavis, the attack was “socially designed” and the cause of the security breach was a small set of validators. With the new funding, the company claims they can increase the number of validators from five to twenty-one in just three months.
Binance CEO made a statement
Binance CEO “CZ” Changpeng Zhao added:
“Since working together on the Axie Infinity project at Binance Launchpad, we have witnessed the tremendous work and growth of the Sky Mavis team. We are confident that Sky Mavis will add significant value and growth to the industry as a whole. We believe it is necessary to support them as they work tirelessly to resolve the latest incident.”
In addition to financing, Sky Mavis and Binance, LandNFTHe will work closely on projects including privately selling .
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.