Sky Mavis raises $150 million in funding round after having $625m stolen in Ronin hack
Axie Infinity developer Sky Mavis has managed to raise $150 million in a funding round led by Binance, in an effort to mitigate the damage done to the Ronin network, which has lost a combined sum of ETH and USDC worth $625m.
After suffering one of the biggest attacks in crypto history, Sky Mavis has undergone a funding round where it has raised $150 million USD in an effort to mitigate the damage done to the Ronin ecosystem. The funding round was led by Binance, with Animoca Brands, a16z, Accel, Dialectic and Paradigm also taking part.
“In order for the global ecosystem to continue thriving and maturing, it is imperative that we work together, especially when it comes to security, which is our strong suit,” says Changpeng “CZ” Zhao, the CEO of Binance.
“We have seen the tremendous work and growth of the Sky Mavis team since working together on the Axie Infinity project on Binance Launchpad. 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.”
All users affected by the $625m March 23rd Ronin validator hack (an astounding 173,600 ETH and 25.5m USDC stolen!) will be reimbursed using funds from this round together with the balance sheet funds of Sky Mavis. The Vietnamese-based company has pointed out that the attack was ‘socially engineered’, suggesting that it wasn’t a security flaw that led to this breach, as has usually been the case for most crypto projects. The small amount of validator nodes, of which there are only 5, helped make this breach significantly easier.
Within the next 3 months, Sky Mavis plans to increase this set of validator nodes from a measly 5 to a strong 21 group. As of writing, 5 new validators have been added: Animoca Brands, Delphi Digital, Dialectic, Nansen and Stable Node.
“Sky Mavis is committed to reimbursing all of our users' lost funds and implementing rigorous internal security measures to prevent future attacks. With the support of Binance and other industry leaders, we will be able to quickly expand the validator set from five to 21 validators to ensure the security of the Ronin network.” says Trung Nguyen, the CEO of Sky Mavis.
The Ronin bridge will remain closed until it gets a security upgrade as well as a couple of audits, while the Katana DEX alongside deposits and withdrawals on the Ronin network have been successfully reopened.