Sky Mavis recovers $5.7M from Ronin Bridge hack
Sky Mavis, the company behind the popular play-to-earn (P2E) game, Axi Infinity, with the help of Norwegian authorities, He announced that he earned $5.7 million from the 2022 Ronin Bridge event.
On June 7, Sky Mavis announced that Økokrim, Norway's central unit that fights economic and environmental crime, had recovered $5.7 million in funds from the Ronin Bridge hack.
Sky Mavis said the effort will require coordination between law enforcement, lawyers, accountants and blockchain forensic teams such as Chainalysis.
The blockchain gaming company publicly thanked the Norwegian government and the United States Federal Bureau of Investigation for tracking the money and finding its assets.
Some funds are used to cover expenses
The gaming company said the newfound money will go back into Axie Infinity's coffers. But a portion of the money will be earmarked to cover the costs of those trying to recover. They wrote:
“15% of the recovered assets will be used to cover the costs and expenses involved in the recovery efforts. The remaining 85% of the recovered funds will be deposited into Axie Infinity's treasury.”
Meanwhile, in addition to the $5.7 million that the company has recovered, law enforcement has announced that it has seized an additional $40 million in digital assets. The company stated that it will take time to recover these assets, and they do not yet have a specific timetable for their return.
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The Ronin Bridge incident
The Ronin Bridge hack is still one of the costliest security breaches in the cryptocurrency space. In the year On March 29, 2022, the Ronin Network reported a security breach of the Ronin Bridge, the protocol that facilitates the transfer of assets from Ethereum to Ronin.
The exploit netted 173,600 Ether (ETH) and 25.5 million USD Coin (USDC) in two transactions where the attacker used hacked private keys to withdraw fake currency. At the time, the assets were worth $612 million.
Sky Mavis has raised $150 million in funding led by crypto exchange Binance in April 2022 to reimburse affected users. Since then, the creators of Axie Infinity have strengthened the security of Ronin's blockchain by partnering with additional validators such as Google Cloud.
Despite the incident, Ronin remains the top blockchain for non-distributable tokens (NFTs). It currently ranks third among the top blockchains in terms of NFT sales, behind Solana and Ethereum.
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