Sky Mavis Reclaims $5.7M from 2022 Ronin Bridge Hack with Norwegian Authorities' Help
Summary:
Sky Mavis, the creator of Axie Infinity, has successfully reclaimed $5.7 million from the 2022 Ronin Bridge hack. This recovery, enabled by Norwegian authorities, required cooperation from law enforcement, lawyers, accountants, and blockchain forensic teams. The retrieved funds will return to the Axie Infinity treasury, with a small part covering recovery-related expenses. An additional $40 million in digital assets is still frozen and is to be retreived in due course. Sky Mavis thanked the Norwegian government and the US FBI for their assistance in recovering the assets.
The creator of the widely popular play-to-earn game, Axie Infinity, Sky Mavis, announced that it successfully recouped $5.7 million related to the infamous Ronin Bridge hack of 2022 with the support of Norwegian authorities. On June 7, Sky Mavis revealed that Norway's key agency for addressing economic and environmental violations, known as "Økokrim," secured and reverted $5.7 million from the money lost in the Ronin Bridge cyber breach. Achieving this feat required collaboration among legal enforcers, legal advisors, financial experts, and blockchain forensic groups like Chainalysis, added Sky Mavis. Source: Sky Mavis
In a public statement, the blockchain-based gaming entity extended its gratitude to the Norwegian government and the United States Federal Bureau of Investigation (FBI) for their roles in tracing and reclaiming the assets. Some of the reclaimed assets will be channeled towards expenses.
Sky Mavis confirmed that the newly recovered funds are set to be returned to the Axie Infinity (AXS) treasury. Nonetheless, a fraction of the recovered money will be set aside to offset the costs associated with the recovery process. According to their statement, "15% of the reacquired assets will be tasked with settling the costs incurred during the recovery process, while the remaining 85% will serve the Axie Infinity treasury."
Furthermore, the company disclosed that law enforcement units have secured an additional $40 million in digital assets, separate from the rescued $5.7 million. However, the firm cautioned that the process for recouping these assets might require time and currently lacks a predefined timeline for completion.
The Ronin Bridge cyber breach remains one of the most expensive security lapses in the digital currency industry. The Ronin network disclosed a security loophole impacting its Ronin Bridge, a system designed to enable asset transfer from Ethereum to Ronin, on March 29, 2022. The security breach resulted in the loss of 173,600 Ether (ETH) and 25.5 million USD Coin (USDC) following two transactions wherein the hacker utilized stolen private keys to create fraudulent withdrawals. At that moment, the stolen assets worth totalled $612 million.
Sky Mavis managed to assemble $150 million in April 2022 to compensate affected users through a fundraising round spearheaded by the crypto exchange platform Binance. Since then, the makers of Axie Infinity have fortified Ronin blockchain's security by integrating with more validators, such as Google Cloud. Despite the security breach, Ronin still ranks among the top-notch blockchains for nonfungible tokens (NFTs), currently sitting third in the overall rankings of the top blockchains in terms of aggregate NFT sales, behind Solana and Ethereum.
Published At
6/7/2024 4:06:47 PM
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