Sky Mavis Holds Funding Round Led by Binance to Restore Lost Funds

It is normal to trade financial instruments that have existed in the market for a long time. Times have changed, and Crypto trading is emerging as a cool alternative for traders of every background. Trading platforms have noted this to integrate upgraded tools and facilitate the trading of digital currencies.

Binance is one of the few players to have made its name within only 4-5 years. Binance has come a long way since its establishment to become a global name in Crypto trading. One can engage in trading other financial instruments as well, but Cryptocurrencies remain a major highlight. Read our Binance review to know more about the globally renowned trading platform.

Restoring the Lost Fund

The field of Crypto trading is relatively new. Since many platforms are evolving with time, there is a small gap exploited by hostile elements. They hack into the network and drain out a major portion of Cryptocurrency.

Binance has a history of once experiencing a breach, and that was probably a motivation for the Hong Kong-based trading platform to lead the funding round for Sky Mavis.

Sky Mavis is the creator of Axie Infinity. It recently became a victim of a socially engineered hacking attack. Its Axie DAO validator nodes and Ronin validator nodes were compromised due to a breach in the small validator set.

It exposed the entire system, and it drained 173,600 Ethereum and 25.5 million USDC.

There is a plan to carefully onboard 21 validators in the coming three months. Meanwhile, Sky Mavis is investing a lot of effort in reimbursing its users for the lost funds.

Binance came forward to lead the funding round to raise 150 million. The funding round saw the participation of five major investors, namely a16z, Animoca Brands, Paradigm, Dialectic, and Accel.

Investigation for the Ronin Validator Hack is underway. Until the investigation concludes, Ronin Bridge will remain closed, and it will reopen later to enable all the users to withdraw their funds. A timeline of two years has been set to recover the lost funds. If the timeline is not met, the Axie DAO will conduct a vote to take a call on the next step that the treasury must take.

Binance has announced that it will keep its ETH/USDC withdrawal and deposit open for all users.

Changpeng Zhao, the Chief Executive Officer of Binance, called for everyone to work together within the global ecosystem, especially securing the respective networks. Changpeng Zhao added that Binance believes in the potential of Sky Mavis to bring a lot of value and growth to the industry.

Trung Nguyen, the Chief Executive Officer of Sky Mavis, assured everyone that Sky Mavis was committed to reimbursing the funds, followed by implementing rigorous internal security measures. Trung Nguyen credited Binance for offering the support to allow Sky Mavis to expand the validator base from 5 to 21.