Axie Infinity Raises $150M Led by Binance to Restore Stolen Funds on the Ronin Bridge

Sky Mavis, the creator of the famous P2E NFT game Axie Infinity, has raised $150 million in a new fundraising round led by Binance. The fundraising aims to recover lost funds from the recent exploit on Axie Infinity’s Ronin Bridge, which resulted in a $600 million loss. Animoca Brands, a16z, Dialectic, Paradigm, and Accel also participated in the fundraising round.

On March 23rd, the hacker used hacked private keys to drain 173,600 Ethereum (ETH) and 25.5 million USD Coin (USDC) in just two transactions. The developers of the NFT game had promised at the time that they would either try to collect all of the lost funds or reimburse users with the help of their backers.

Aside from the $150 million raised, the rest would be refunded by Sky Mavis and Axie Infinity’s financial accounts. The developers have also identified a small validator set on Axie DAO as being the root problem of the hack and have decided to increase the number of validator groups to 21 in the next three months.

The project’s developers believe that it will be many weeks before the Ronin Bridge is functioning again, as they are working on a security update and additional audits before reopening it to users. Meanwhile, Binance is assisting Axie Infinity users in depositing and withdrawing ETH from the Ronin Network. If the stolen funds are not recovered within two years, the Axie DAO will vote on how to proceed with its treasury.

Many in the crypto world believed that the hacker behind the Ronin Bridge attack, like the Poly Network exploiter, would eventually return the funds. However, there has been no evidence of such communication between game developers and hackers up to this point.

In an attempt to launder stolen funds, the Axie Infinity exploiter account has begun sending funds to coin mixer services such as Tornado Cash. However, it is worth noting that the Poly Network exploiter did the same at first but finally decided to return the funds because laundering such a large sum got increasingly difficult.

We will continue to update you more about the hack. Stay tuned!

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