Axie Infinity Developer Says It’s Ready to ‘Play the Long Game’ On Road to Recovering Stolen Funds
Sky Mavis, Axie Infinity’s developer, said that recovering stolen crypto assets may take two years, but that the company is prepared to play the “long game.”
During NFT LA, Axie Infinity claimed it had been hacked, resulting in the loss of more than $600 million in cryptocurrencies – the largest hack to date. While Axie Infinity has been able to obtain funds from investors to reimburse some of the users who have lost money, it understands that recovering even a “portion” of the stolen crypto will be difficult.
Sky Mavis’ chief operating officer, Aleksander Leonard Larsen, talked with Bloomberg last Thursday, indicating that recovering the payments might be a lengthy process.
“What we are assuming over the next two years is that some funds will be recovered,”
He thinks that’s enough time to learn more about the hack, and he emphasizes the company’s willingness to play the long game:
“Two years for Axie is a good time for us to get more information. We’re here to play the long game.”
Sky Mavis is currently working with law enforcement to track down the stolen tokens, but it hasn’t provided any updates on the case. Given that the firm had to take $450 million off its balance sheet to compensate all individuals affected, recovering the money will be a huge boost.
However, based on previous experience, the odds of collecting the money are quite limited. Given that ETH has been the primary target of theft, on-chain data shows that a portion of it has been transferred to Tornado Cash, an Ethereum mixer.
Sky Mavis has kept the platform’s expectations in check by only expecting to reclaim a portion of the loot. It’s rare for the proceeds of massive crypto attacks like these to be fully recovered, according to Rishav Rai, the chief investigator at Merkle Science, but it’s also difficult for hackers to dispose the stolen assets.
Crypto mixers like Tornado Currency aren’t designed to handle this much cash, and it’s far easier to spot massive crypto transfers between wallets or to a centralized exchange. As a result, it’s not unexpected that the last time someone stole this much money, the majority of the cash were recovered.
While Sky Mavis is working on reimbursing players, many others are leaving the site owing to a reduction in gaming earnings that predates the March breach. The magnitude of these thefts demonstrates the fragility of crypto platforms, which has already resulted in hacks worth over $1 billion in the first quarter of this year.
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Axie Infinity Developer Says It’s Ready to ‘Play the Long Game’ On Road to Recovering Stolen Funds
Sky Mavis, Axie Infinity’s developer, said that recovering stolen crypto assets may take two years, but that the company is prepared to play the “long game.”
During NFT LA, Axie Infinity claimed it had been hacked, resulting in the loss of more than $600 million in cryptocurrencies – the largest hack to date. While Axie Infinity has been able to obtain funds from investors to reimburse some of the users who have lost money, it understands that recovering even a “portion” of the stolen crypto will be difficult.
Sky Mavis’ chief operating officer, Aleksander Leonard Larsen, talked with Bloomberg last Thursday, indicating that recovering the payments might be a lengthy process.
“What we are assuming over the next two years is that some funds will be recovered,”
He thinks that’s enough time to learn more about the hack, and he emphasizes the company’s willingness to play the long game:
“Two years for Axie is a good time for us to get more information. We’re here to play the long game.”
Sky Mavis is currently working with law enforcement to track down the stolen tokens, but it hasn’t provided any updates on the case. Given that the firm had to take $450 million off its balance sheet to compensate all individuals affected, recovering the money will be a huge boost.
However, based on previous experience, the odds of collecting the money are quite limited. Given that ETH has been the primary target of theft, on-chain data shows that a portion of it has been transferred to Tornado Cash, an Ethereum mixer.
Sky Mavis has kept the platform’s expectations in check by only expecting to reclaim a portion of the loot. It’s rare for the proceeds of massive crypto attacks like these to be fully recovered, according to Rishav Rai, the chief investigator at Merkle Science, but it’s also difficult for hackers to dispose the stolen assets.
Crypto mixers like Tornado Currency aren’t designed to handle this much cash, and it’s far easier to spot massive crypto transfers between wallets or to a centralized exchange. As a result, it’s not unexpected that the last time someone stole this much money, the majority of the cash were recovered.
While Sky Mavis is working on reimbursing players, many others are leaving the site owing to a reduction in gaming earnings that predates the March breach. The magnitude of these thefts demonstrates the fragility of crypto platforms, which has already resulted in hacks worth over $1 billion in the first quarter of this year.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Patrick
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