Sky Mavis Secures $150 Million in New Funding Round to Reimburse Ronin Bridge Hack Affectees

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Evening

So Sky Mavis the company behind popular play to earn game Axie Infinity have raised $150 million dollar in a Binance led funding round with participation from Animoca Brands, a16z, Dialectic, and Paradigm.

Amount from funding round along with Sky Mavis and Axie Infinity's balance sheet will be used to refund the affectees of the recent $625 Ronin bridge hack. The hack, believed to be the largest in crypto history,took place on March 23 with validators nodes of Sky Mavis and Axie decentralized autonomous organization (DAO) getting compromised. This allowed hacker to withdraw a total of 173,600 ether (ETH) and 25.5 million USDC in two transactions from the Ronin Bridge.

The hacked Ronin bridge is not fully operational yet and will undergo extensive audits and security upgrades before getting back online. Sky Mavis believes that it will be able to restore Ronin Bridge and increase number of network validators from five to twenty one in next three month using the new funding.

Meanwhile, 56,000 Eth stolen from Axie DAO treasury are gonna remain undercollateralized as undercollateralized Sky Mavis works with law enforcement to recover stolen funds. And if funds are not recovered in two years future of Axie treasury will be decided by Axie DAO voting.

Interestingly, in the recent funding announcement Sky Mavis admitted their fault regarding the hack.

While racing for mainstream adoption, we made some trade-offs that ended up leaving us vulnerable to this sort of attack. It’s a lesson that we’ve learned the hard way. A lesson that will guide how we build Ronin out moving forward. We’re confident that we will come out stronger and wiser from this.

While chances of recovering stolen funds are slim, Sky Mavis admitting the fault regarding overlooking the security and going ahead with reimbursement plans is certainly a good news especially for those affected by the hack.

Posted Using LeoFinance ^Beta