Back in March Sky Mavis, the startup that makes the video game Axie Infinity, informed the community that it had been targeted in a devastating hack. While most video games are mostly recreational, Axie Infinity’s popularity depended largely on its players’ ability to trade and earn crypto tokens that contained financial value, and players had reserves that symbolized noteworthy savings.
The hack compelled the Vietnam-based game developer to shut down its system for pulling tokens out of the game, effectively freezing the assets of its users before they could respond to the hack news.
Ronin Hack: Axie Infinity CEO denies moving cryptos
In the aftermath of the hack of the Ronin blockchain, Vietnamese game developer Sky Mavis is rejecting accusations of misconduct as some USD 3m worth of its native AXS token had apparently been moved from Ronin to a Binance account in the hours preceding the news of the attack.
The unusual activity transpired during a moment of critical stress for Sky Mavis. For months, the first version of its game had been illustrating signs of steep decline, and many players were losing confidence. The company was rushing to get the latest version of Axie Infinity out when hackers on March 23 emptied its system of cryptocurrencies that were worth over $600 million at the time. It was one of the most prominent cyberattacks in the history of crypto.
Sky Mavis asserts that its CEO Trung Nguyen was diverting the funds to his wallet with the purpose to protect the company and help users after the hack.
Kalie Moore, a company spokeswoman, expressed that Nguyen had been working to shore up the company’s finances during the crisis, and had to do so in a manner that wasn’t evident to the broader crypto market, for the good of the all-around Axie Infinity economy. By moving AXS to the exchange, the company could deliver liquidity to its users as it restored access to funds through Binance.
After this story broke out Nguyen posted a series of tweets restating Moore’s points.
However, Sky Mavis soon got access to considerably more money from investors. On April 6, the company reported it had raised $150 million to support refund users and recover from the attack. Sky Mavis reopened the system for depositing and withdrawing funds. Since the hack was informed, the value of an AXS token has fallen from around $64 to $17.
The analysis of the pre-announcement transaction was done by someone who runs a small YouTube channel committed to crypto-based gaming, and who asked to be recognized only by his screen name, Asobs, citing fear of counterattack.
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