by The fresh investment round, headed by Binance, may assist Sky Mavis deal with the fallout from arguably the worst breach in Decentralized Finance history. Axie Infinity developer Sky Mavis has raised $150M in a fresh fundraising round spearheaded by Binance, based on a press announcement sent to CryptoSlate this morning.
According to the release, the new money, along with Sky Mavis and Axie Infinity’s financial sheets, could aid the company in reimbursing customers harmed by the latest $615M breach of its L2 ETH sidechain Ronin Network.
The CEO of Sky Mavis stated that Sky Mavis is dedicated to reimbursing any lost payments and putting in place strict inner security procedures to avoid repeat intrusions. If Binance and different big companies help us, we can quickly grow the number of validators from 5 to 21 so that the Ronin network is safe. Many more venture capital firms joined Binance as donors, like a16z, Accel, Paradigm, Animoca Brands, and Dialectic.
Decentralized Finance’s Greatest Heist
According to CryptoSlate, an anonymous hacker targeted Ronin Network, an ETH-dependent sidechain established by Sky Mavis to promote its renowned NFT-based game Axie Infinity, and stole 173.6K ETH and 25.5M USDC.
The Ronin chain had 9 validator nodes then, with 5 requiring signatures before any transaction could occur. After taking over 4 of these nodes in their hack, the hackers employed an Axie DAO third-party validator as a replacement for the fifth.
Sky Mavis recalled that the hack was strategically planned in its financing statement, and a comprehensive analysis is continuing.” The limited validator list was the basis of the hack, making it simpler to hack the network. When Sky Mavis grows the group of validators, there will be twenty-one validators within the next 3 months.
Reorganization of Security
The business now intends to integrate the additional money with its existing holdings so every user can easily make transactions. Security upgrades and audits would be carried out on the Ronin Network during the following few weeks.
Withdrawing money would be possible for everyone on the Ronin Network when the bridge is opened. While Sky Mavis collaborates with the enforcement agencies to retrieve the cash, the 56K Ethereum stolen from the Axie Decentralized Autonomous Organization treasury would stay uncollateralized. When all of the dirty cash isn’t back in the Axie Decentralized Autonomous Organizations’ hands in 2 years, they will vote on what to do next.
Everyone can’t be Pleased
Similarly, the campaign did not sit well with every Cryptocurrency Twitter user. By hodling cryptocurrency on Binance, you are dumping out Axie, according to Bitfinex’ed, who has consistently criticized USDT stablecoins. Bailing out failing ventures doesn’t cost them anything, and they could profit from when the token is pumped and dumped.
It’s merely a quarter of the damage. It’s not an issue. As it turns out, they’d purchase some shitcoins and hike the prices to make a quick profit. They’ll then help other people do the same thing and make a lot of money. In any case, frequent users are unlikely to incur large losses because the Ronin Network’s cybersecurity breach is potentially a “win” in and of itself.
