CDS Crypto News Crypto News Today- Sky Mavis Recovers $5.7M Following Ronin Bridge Hack
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Crypto News Today- Sky Mavis Recovers $5.7M Following Ronin Bridge Hack

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Sky Mavis Recovers $5.7M Following Ronin Bridge Hack

Crypto News Today- Sky Mavis Recovers $5.7M Lost in Ronin Bridge Breach

Crypto News– Sky Mavis, the company behind the popular play-to-earn (P2E) game Axie Infinity, has revealed that, in collaboration with Norwegian authorities, it successfully retrieved $5.7 million from the infamous Ronin Bridge incident of 2022.

On June 7, Sky Mavis disclosed that Norway’s central unit for combating economic and environmental crimes, known as Økokrim, froze and returned $5.7 million in funds linked to the Ronin Bridge hack.

Sky Mavis emphasized that this achievement required extensive coordination among law enforcement agencies, legal representatives, financial experts, and blockchain forensic teams such as Chainalysis.

A portion of the recovered funds will be allocated to cover expenses

The gaming company stated that the newly retrieved funds would be returned to the Axie Infinity treasury, with a portion allocated to cover the expenses incurred during the recovery process. They specified:

15% of the recovered assets will be utilized to cover costs and expenses associated with the recovery efforts. The remaining 85% of the reclaimed funds will be deposited into the Axie Infinity treasury.

Additionally, the company revealed that, aside from the $5.7 million in recovered funds, law enforcement has frozen an additional $40 million in digital assets. However, they cautioned that the process of reclaiming these assets will require time, and as of yet, no specific timetable has been established for their return.

The Ronin Bridge Breach

The Ronin Bridge hack remains one of the most costly security breaches in the cryptocurrency realm. On March 29, 2022, the Ronin network disclosed a security breach affecting its Ronin Bridge, a protocol enabling asset transfers from Ethereum to Ronin.

During the exploit, 173,600 Ether (ETH) and 25.5 million USD Coin (USDC) were drained in two transactions as the attacker leveraged hacked private keys to falsify withdrawals. At the time, the combined value of the assets totaled $612 million.

In April 2022, Sky Mavis initiated a $150 million fundraising effort, led by crypto exchange Binance, to reimburse affected users. Subsequently, the creators of Axie Infinity fortified the security of the Ronin blockchain by collaborating with additional validators, including Google Cloud.

FAQs

What was the Ronin Bridge hack?

he Ronin Bridge hack refers to a security breach on March 29, 2022, where the Ronin network’s bridge protocol was compromised, resulting in the theft of funds.

How much money was recovered by Sky Mavis?

Sky Mavis recovered $5.7 million from the funds lost in the Ronin Bridge hack.

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