Axie Infinity Is Suffering After $622 Million Ronin Network Got Hacked

The Axie Infinity Shards (AXS) and Smooth Love Potion (SLP) tokens are still struggling to recover a day after Sky Mavis revealed that the hacker stole 173,600 ETH worth $622 million from the Ronin Network sidechain.

Sky Mavis is the creator of the popular play-to-earn cryptocurrency game Axie Infinity. The Ronin network is a sidechain that connects the game to the main Ethereum network, allowing players to send and receive funds.

According to CoinMarketCap data, AXS is down 7.3 % and SLP is down 5.1% in the last 24 hours as of Wednesday morning.

Aleksander Larsen, co-founder and chief operating officer of Axie Infinity, stated in a Twitter thread that he has been working with the Sky Mavis board and cybersecurity experts since yesterday to rule out any lingering threats to the Ronin network.

“This was a social engineering attack combined with human error from December 2021, Sky Mavis tech is solid and we will be adding several new validators to the Ronin Network shortly to further decentralize the network.”

He wrote

The AXS token is used to play the game and also serves as the game’s governance token, whereas the SLP token is awarded to players for completing quests or defeating an opponent.

The hack was first reported yesterday by Axie Infinity developer Sky Mavis, who said the attacker used “hacked private keys” to make fraudulent transactions last week. Sky Mavis and the company’s founders have been heavily criticized for not catching the hack sooner and not being decentralized enough to prevent a large exploit in the first place. Larsen stated that the funds that had been stolen would be recovered or repaid.

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