The company behind the play-to-earn game, Sky Mavis, suffered over $600 million exploit last month. Days after the attack was detected, the company announced that it is working on reimbursements of victims of the Ronin Network hack.
However, the company on Wednesday said it has raised up to $150 million for reimbursement of victims, a funding round led by the popular crypto exchange, Binance.
Venture capital firm a16z, Dialectic, Paradigm, and Accel are firms that participated in the funding round.
The funds from the new round as well as Sky Mavis and Axie Infinity balance sheets will ensure the victims are reimbursed, according to Sky Mavis.
“The 56,000 ETH compromised from the Axie DAO treasury will remain undercollateralized as Sky Mavis works with law enforcement to recover the funds. If the funds are not fully recovered within two years, the Axie DAO will vote on next steps for the treasury,” the company said.
“We believe that Axie will go down in history as the first game to imbue players with true digital property rights and recent events have only strengthened this conviction.”
On Wednesday, Binance also said it has fully resumed deposits, and withdrawals on the Ronin Network after closing and partially resuming the service.
“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 Changpeng Zhao.
A report from the Huobi research institute says that the hack was as a result of trying to balance user experience and security.
“Axie Infinity exploded in popularity and saw a rapid influx in users on the Ronin blockchain. They took shortcuts to relieve network bottlenecks, cutting down the number of nodes that needed to be validated for transactions to just five of nine nodes, making it easier for hackers to exploit,” said, Flora Li of the Huobi research institute.
“While Sky Mavis has pledged to raise the number of required nodes to eight, it still doesn’t solve the fundamental problem of how proof-of-stake blockchains can keep transactions fast, user-friendly, and energy-efficient without compromising security.”
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