Axie Infinity To Compensate Ronin Hack Victims And Relaunch Bridge After $552M Hack

Bishal Kumar Chanda
25.06.2022

Sky Mavis, the developer behind the popular play-to-earn game Axie Infinity, announced plans to reimburse the Ronin bridge hack victims. Furthermore, it's preparing to reopen the Ronin bridge next week.

Players used the Ronin bridge to transfer assets between the Ronin chain and the Ethereum network. According to the latest community update, the Ronin bridge reopening is planned for June 28, "with all user funds returned."

Furthermore, the team said that a hard fork is required to relaunch the bridge, meaning all node operators need to upgrade their software. The validator node operators have already been informed of the necessary steps. But the non-validator nodes will need to follow specific instructions shared by the developers.

The Ronin Hack

The Ronin exploit took place at the end of March and was one of the largest in the crypto world. The hacker made away with an estimated $552 million in Ethereum and USDC (at the time of the hack).

Subsequently, the hacker sent some of the stolen funds (around $7 million in ETH) to Tornado Cash's cryptocurrency mixing service. Also, the U.S. Treasury identified three additional wallet addresses allegedly tied to North Korea's Lazarus hacking group.

Reportedly, the attacker used stolen private keys for signing transactions from five of the nine validator nodes on the network. Moreover, the hacked nodes included four of Sky Mavis' own validators.

Earlier this week, Sky Mavis announced that their redesigned Ronin bridge has passed crypto-security firm Certik's audit, coming back "with minor suggestions."

The team said on Tuesday, "We are implementing Certik's improvement recommendations and will begin to deploy the validator Governance Smart Contract." 

Sky Mavis also pledged to either recover or reimburse the stolen user funds after the incident. To aid the process, the company raised $150 million in fresh funding in April. Furthermore, the fundraiser was led by crypto exchange Binance, with participation from Animoca Brands, Andreessen Horowitz, Paradigm, and others.

Additionally, the developers launched a $1 million bug bounty program to "encourage responsible disclosure of security vulnerabilities."

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