Sky Mavis COO Promises to Reimburse Players After Hackers Steal $625 Million

The attacker found a backdoor in a Ronin node then used hacked private keys to begin withdrawals.

Sky Mavis COO Promises to Reimburse Players After Hackers Steal $625 Million

Photo Credit: Twitter/ Axie Infinity

Axie Infinity co-founder has stated that new validators will be added to the Ronin network

Highlights
  • Aleksander Leonard Larson is the co-founder of Axie Infinity
  • Axie Infinity is one of the biggest play-to-earn games around
  • The value of Axie Infinity Shards (AXS) has tanked since the hack

Sky Mavis, the company behind the popular play-to-earn game Axie Infinity, has pledged to reimburse players after hackers stole $625 million (roughly Rs. 4,730 crore) from the underlying Ronin Ethereum sidechain. Aleksander Leonard Larson, co-founder and chief operating officer of Sky Mavis, has since tweeted that the crypto company is committed to ensuring all of the drained funds are recovered or reimbursed. Hackers reportedly stole around 173,600 Ether and $25.5 million in USDC on March 23. According to blockchain analytics firm Elliptic, this is the second-largest cryptocurrency hacker theft on record.

"We are fully committed to reimbursing our players as soon as possible," Aleksander Larsen, chief operating officer of Sky Mavis, told Bloomberg. "We're still working on a solution, that is an ongoing discussion."

"The easiest way to look at this is like the bridge is the bank for the Ronin Network," Larsen said. "The heist that happened took out all the ETH and USDC. So, the ETH/USDC on Ronin Network is not currently backed by anything. But we are looking at other options."

The Ronin Network published a blog on Tuesday explaining that a hacker compromised its network, exploiting the company for 173,600 Ether and 25.5 million USDC stablecoins.

"We are working with law enforcement officials, forensic cryptographers, and our investors to make sure all funds are recovered or reimbursed," Ronin Network wrote. "The attacker used hacked private keys in order to forge fake withdrawals."

Larson called the hack “a social engineering attack combined with a human error” in a Wednesday tweet, adding that Ronin plans to add additional validators to boost decentralisation.

“Sky Mavis has also retained Chainalysis to ensure that any of the stolen ETH moved from this Ethereum address will be tracked,” he said. “It doesn't seem like the hacker will have much luck cashing out.”

Funds stolen in the crypto hack include "deposits of players and speculators and the Axie Infinity Treasury revenue," Larsen added. The attack happened on March 23, but the company only discovered it Tuesday.


Asus India's Arnold Su joins this week's Orbital, the Gadgets 360 podcast, to talk about how the PC maker is planning to grow its presence in the country. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

Affiliate links may be automatically generated - see our ethics statement for details.
Comments

For the latest tech news and reviews, follow Gadgets 360 on Twitter, Facebook, and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel.

Shomik Sen Bhattacharjee
Shomik is a senior sub-editor at Gadgets 360. As someone who's screened the consumer tech space for the past four years, he's now shifted focus to the crypto-verse. When not converting currency values in his head, you may find him in an intense five-a-side football match or grinding out the newest Destiny 2 weekly challenge on his Xbox. You can reach him for tips or queries at ShomikB@ndtv.com. More
Shiba Inu’s Metaverse to Auction Over 100,000 Virtual Plots Priced Upto ETH 1
MSI Summit, Prestige, Modern Laptop Lineups Refreshed With Updated Intel, Nvidia Hardware
Read in: हिंदी
Share on Facebook Tweet Snapchat Share Reddit Comment google-newsGoogle News

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2022. All rights reserved.