Sky Mavis secures $150Mn in funding to reimburse Ronin Hack victims

Sky Mavis secures $150Mn in funding to reimburse Ronin Hack victims

Sky Mavis, a technology company that creates decentralized applications and services, has recently announced that it has successfully secured $150 million in funding headed by the Binance crypto exchange.

The funds will be utilized for helping users who lost funds during a ~$625 million hack of Axie Infinity, a play-to-earn game.

As reported by Sky Mavis, companies like Animoca Brands, Paradigm, a16z, Accel, and Dialectic also participated in the round.

The new funds will be united with cash from the balance sheet of Sky Mavis for reimbursing all users who have lost their money during the hack on Ronin, an Ethereum-based sidechain supporting the game.

The firm is planning to reopen the Ronin bridge after some audits and security upgrades, which according to it could take several weeks. Meanwhile, Binance is issuing liquidity for users of Ronin by empowering them to withdraw and credit ETH freely.

Binance CEO, Changpeng Zhao wrote that for ensuring that the global ecosystem thrives and matures continuously, it is important to work together precising at a time when security is a major concern. Their firm has witnessed Sky Mavis’ team's excellent work and enormous growth while working collaboratively on the Axie Infinity project on Binance Launchpad.

For information, Binance Launchpad is the exchange's token launch platform which helps projects like Axie Infinity to raise funds and offers advisory services for helping them to increase their reach in the environment.

Sky Mavis also talked about the cause of the attack during the announcement, accrediting the breach to the small validator which made it easier for the network to compromise.

The hacker was able to attain five of the nine keys used to authenticate the network, sufficient for enabling withdraw of Ronin bridge tokens into an exterior wallet.

Sky Mavis has said that it is planning to increase the group of validators to 21 from 5 in the coming three months for ensuring safety against the risks which can occur in the future.

Source Credit - https://techcrunch.com/2022/04/06/axie-infinity-creator-raises-150m-round-to-compensate-victims-of-625m-ronin-hack/