CEO Sky Mavis, the man behind the hit game Axie Infinity, transferred around $3 million in AXS to Binance before revealing the biggest hack in industry history on March 29.
According to Bloomberg, Mr. Trung Nguyen – CEO of Sky Mavis transferred money in an effort to save the company and support liquidity for users after the attack. This was done before Axie made the hack public. In the early morning, Anh Trung also spoke about this:
“As soon as we discovered the security breach, we immediately contacted Binance to discuss closing the bridge and how to recover user funds as soon as possible. The founding team chose to transfer funds from my wallet to prevent short sellers, Axie wallet followers from running ahead of the news.
The accusations against us of insider trading speculation are baseless and untrue. In fact, the founding team even sent $7.5 million from a known multi-sig wallet Axie to Ronin Network before the bridge closed to avoid triggering any short sellers.”
Sky Mavis spokeswoman Kalie Moore added:
“At the time, we (Sky Mavis) understood that our positions and options would be better if there were more AXS on Binance. This will allow us the flexibility to secure the necessary loans/capital.”
Accordingly, this was part of a series of transfers from wallets linked to Axie that were tracked by a user named Asobs. All of these wallets moved funds from the Ronin sidechain to centralized exchanges like Binance after the attack. However, so far only Sky Mavis CEO has confirmed and declined to comment when asked if the other wallets belong to the company’s jurisdiction.
Sky Mavis then raised $150 million to repair the damage. After more than 3 months of hiatus, the project has reopened the Ronin bridge and claims to have completed 100% of the compensation for victims. Sky Mavis is still hoping to recover stolen assets, which the US Treasury Department alleges was siphoned off by the North Korean hacker group, Lazarus.
Axie Infinity is arguably one of the most successful titles to date with over $4 billion in trading volume, plus millions of daily players at its heyday last year.
However, this Play-to-Earn economy began to crash late last year before the Ronin hack, leading to a series of changes that revived the project, such as the removal of SLP rewards. But it continues to sink deeper into trouble, as 2022 revenue seems to be a fraction of its summer 2021 peak.