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Sky Mavis Raises $150M To Reimburse Victims Of Axie Infinity Hack

On April 6th, Sky Mavis announced the company had closed a $150 million funding round in an attempt to reimburse users who lost funds in a hack of the organization’s hit game Axie Infinity. Earlier this month, a $624 million heist was pulled off on Axie Infinity‘s Ronin Network, which operates as a sidechain, or parallel network, to Ethereum.

Binance led this recent funding round. The venture capital firm a16z, Dialectic, Paradigm, and Accel also participated in this round of financing.

“While racing for mainstream adoption, we made some trade-offs that ended up leaving us vulnerable to this sort of attack,” Sky Mavis said in a blog post. “It’s a lesson that we’ve learned the hard way. A lesson that will guide how we build Ronin out moving forward. We’re confident that we will come out stronger and wiser from this. The new round, combined with Sky Mavis and Axie balance sheet funds, will ensure that all users are reimbursed. The Ronin Network bridge will open once it has undergone a security upgrade and several audits, which can take several weeks. In the meantime, Binance is supporting the Ronin Network by providing ETH withdrawals and deposits for Axie Infinity users, allowing most of them to operate freely.”

In order to provide better protection for players, Sky Mavis will be increasing the number of validators for the game to 21 over the next three months. These validators will be a combination of various stakeholders, community members, and long-term partners.

Axie Infinity is arguably the most famous non-fungible token gaming experience available today. The game was first launched by Sky Mavis in March of 2018 for Microsft and Apple operating systems.

(All information was provided by Coindesk [1,2], The Lunacian, and Wikipedia)

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