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Axie Infinity raises $150 million to compensate users for Ronin cyber hack

Sky Mavis, the company behind blockchain-based game Axie Infinity, has successfully raised $150 million. Led by Binance, the new round of funding will help relieve Sky Mavis of what could be the biggest hack in DeFi to date.

According to the announcement, this funding, combined with the balance sheets of Sky Mavis and Axie Infinity, will help the company refund users affected by the recent $615 million hack of the Ronin Sidechain Network their Ethereum layer 2.

“Sky Mavis is committed to refunding all lost user funds and implements strict internal security measures to prevent future attacks. With the support of Binance and industry leaders, we will be able to rapidly expand the set of validators from five to 21 to ensure the security of the Ronin network. ”

In addition to Binance, the list of participants in the fundraiser includes companies such as Animoca Brands, a16z (Andreessen Horowitz), Dialectic, Paradigm, and Accel.

As reported on March 29, Ronin Network, an Ethereum-based sidechain created by Sky Mavis to support the popular NFT game Axie Infinity, was hacked and lost 173,600 Ethereum as well as 25.5 million USDC.

At the time, the Ronin chain consisted of nine validator nodes, five of which were required to provide their signatures in order to proceed with any withdrawal deposits. As part of their attack, the hackers gained control of four such nodes and used an additional third-party validator run by the Axie DAO to replace the fifth one.

Going forward, the company now plans to combine the new funds with its own assets to “ensure that all users can withdraw and deposit freely.” In addition, the Ronin Network will receive a security upgrade and some testing in the “next few weeks” to ensure the safety of use for users and prevent future attacks.