Axie Infinity operator raises $150 million to reimburse cyberheist victims

A blood donor plays Axie Infinity during a blood-letting activity in Quezon City on March 22, 2022.

MANILA – Sky Mavis, the operator of the Axie Infinity game, on Wednesday said it raised $150 million in funding, the proceeds of which will be used to reimburse victims of the cyberattack which affected its system. 

The company, which also operates the Ronin network used to store and exchange crypto assets, was hacked on March 23 with around $615 million worth of crypto assets stolen.  

“Sky Mavis is committed to reimbursing all of our users’ lost funds and implementing rigorous internal security measures to prevent future attacks,” the company said in a statement.

The fund raising was led by Binance, which is one of the world’s largest cryptocurrency exchanges, with participation from Animoca Brands, a16z, Dialectic, Paradigm and Accel.

“In addition to the funding, Sky Mavis and Binance will work together closely on projects that include exclusive Land sales and enable Binance login via The Mavis Hub,” Sky Mavis said. 

Axie Infinity has become one of the world’s largest crypto play-to-earn games, seeing a surge in users in the Philippines during the pandemic.  

The new funding round, combined with Sky Mavis & Axie Infinity balance sheet funds, will ensure that all users are able to withdraw and deposit freely, the company said. 

But the company did not specify a date on when withdrawals can resume.

“The Ronin Network bridge will open after it has undergone a security upgrade and several audits, which could take several weeks. In the meantime, Binance is supporting the Ronin Network by providing ETH withdrawals and deposits for Axie Infinity users, enabling most of them to operate freely,” Sky Mavis added. 

Axie Infinity has 2.2 million players who buy and trade in-game assets in the form of NFTs, which they compete against each other to earn crypto tokens. 

“We strongly believe Sky Mavis will bring a lot of value and growth for the larger industry and we believe it’s necessary to support them as they work hard to resolve the recent incident,” said Binance CEO “CZ” (Changpeng Zhao).

Sky Mavis said it is committed to reimbursing all its users’ lost funds and implementing rigorous internal security measures to prevent future attacks. 

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