Sky Mavis Admits the Flaw in Ronin Network’s Security System After the $625M Breach

Sky Mavis admits the flaw in its security system

Sky Mavis, the company that created the Ronin Network bridge, said a week after one of the worst Defi attacks that its rush to build the platform’s user base may have driven it to the lack of security.

The Ronin Network is an Ethereum-based sidechain that is utilized in the Axie Infinity. On March 29, an attacker hacked the bridge linking it to the Ethereum mainnet, draining 25.5 million USDC and 173,600 ETH, totalling around $625 million.

“While racing for mainstream adoption, we made some trade-offs that ended up leaving us vulnerable to this sort of attack,” Axie Infinity said in a blogpost. “It’s a lesson that we’ve learned the hard way.”

The money stolen by anonymous hackers is now being distributed between multiple wallets and solutions to hide the tracks and withdraw digital assets into cash. The hackers have transferred 1,000 ETH, or about $3.5 million, to another Ethereum wallet with no marks or tags, although there appear to be numerous wallets involved in transactions designed to confuse investigators. (You can check more information on the Wallet Address HERE)

Sky Mavis has pledged to reimburse players after hackers stole $625 million from the underlying Ronin Network.

“We are committed to ensuring that all of the drained funds are recovered or reimbursed, and we are continuing conversations with our stakeholders to determine the best course of action,” a Sky Mavis spokesperson said in a statement to CoinDesk. Bloomberg first reported on Sky Mavis’ pledge.

Sky Mavis 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. Animoca Brands, a16z, Dialectic, Paradigm, and Accel also participated in the fundraising round.

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