Axie Developer Raises $150 Million after losing nearly $625 million in a hacking incident
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Sky Mavis, Axie developer, raises $150 Million after losing nearly $625 million in a hacking incident last month. This will help stem players quitting the platform after being unable to access gaming proceeds. 

The money raised will be used to partially reimburse participants and enhance security measures. The funding rounds were led by Binance, the world’s largest cryptocurrency exchange and Axie’s primary trading platform for the token used in conjunction with the game. Other Axie investors include Animoca Brands, venture capital firm Andreessen Horowitz, Dialectic, and Paradigm. 

The funds will be contributed to the balance sheets of Vietnam-based Sky Mavis and Axie Infinity. These will be used to compensate the users affected by the hack of a software bridge known dubbed Ronin, that allowed participants to use tokens from different blockchains. The capital raised is only a third of the capital lost in the hack. 

Trung Nguyen, chief executive of Sky Mavis said in an email said, “Sky Mavis is committed to reimbursing all of our users’ lost funds and implementing rigorous internal security measures to prevent future attacks.”

Binance will be supporting Ronin Network by providing Ether withdrawals and deposits for Axie Infinity users. The number of validators that handle transactions will also be increased from 5 to 21 to tighten security. The Ronin bridge will open once all security measures are in place and several audits will take a few weeks. 

After the hack, Axie Infinity players were restricted from moving digital money out of the virtual world, while the number of daily active users also declined. In his comments, Sky Mavis said the platform remains committed to reimbursing players as soon as possible.

While Sky Mavis works with law enforcement to recover the funds amounting to 56,000 Ether taken from the Axie DAO treasury will remain undercollateralized. If the funds remain fully uncovered for the next two years, the Axie DAO will vote on the next steps for the treasury.

Coindesk, earlier reported the hackers behind the Ronin attack to have moved 1,400 Ether to Tornado Cash on Monday, a crypto asset mixing services 

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