Binance, a major cryptocurrency exchange, announced on Wednesday that it will lead a $150 million funding round of Sky Mavis, the creator of Axie Infinity. According to the press release, the purpose of the funding is to restore funds for the Ronin Bridge’s heist.
Animoca Brands, a16z, Dialectic, Paradigm and Accel will participate in the funding round, which will seek to reimburse user funds affected by the validator’s hack. As reported by Finance Magnates, Ronin Network, a blockchain project, was a victim of a cyberattack after hackers managed to steal around $615 million worth of cryptocurrencies, becoming one of the largest crypto heists to date.
The Heist
The threat actors hacked the systems on March 23, when they managed to steal 173,600 ETH and 25.5 million USD Coins. At the time of the attack, the cryptos were worth $540 million, but their value has risen to $615 million as of press time. The heist was the second-biggest hack ever, according to Tom Robinson, the Chief Scientist at blockchain analytics firm Elliptic.
“Sky Mavis is committed to reimbursing all of our users’ funds and implementing rigorous internal security measures to prevent future attacks. With Binance supporting us, we will be able to expand the validator set from five to 21 on an expedited timeline, which ensures the security of the Ronin network. As a team, we have made an intentional decision to focus on what lies ahead, starting with tomorrow’s launch of Axie Infinity: Origin. We are also thrilled to collaborate with Binance NFT on future projects,” Trung Nguyen, the CEO of Sky Mavis, commented.
Funds Distribution
All users will be reimbursed through the new round and Sky Mavis’ balance sheet funds. It may take several weeks before the Ronin Network bridge opens after it has undergone a security upgrade and several audits. Meanwhile, Binance has opened its ETH/USDC withdrawal and deposit pages, making it possible to withdraw and deposit for most users.
Users will be able to withdraw funds once the Ronin Network bridge is open. However, as Sky Mavis works with law enforcement to recover the 56,000 ETH from the Axie DAO treasury, it will remain undercollateralized. The Axie DAO will vote on the next steps for the treasury if the funds are not fully recovered within two years.
