Blockchain Game Developer Sky Mavis Raises $150 Million To Reimburse Users Affected By Ronin Hack

Sky Mavis, the developer of the popular blockchain video game Axie Infinity, today announced that it has raised $150 million in funding to reimburse users affected by a recent hack.

The funding was led by Binance, the world’s largest cryptocurrency exchange. Animoca Brands, Andreessen Horowitz, Dialectic, Paradigm and Accel also participated.

Sky Mavis’ Axie Infinity video game features an in-game economy that allows users to purchase and trade virtual assets. The in-game economy processes transactions using the sidechain of the Ronin network. A sidechain is a type of blockchain that is connected to another blockchain but operates independently in many ways.

The Ronin Network uses systems known as Validator Nodes to ensure the accuracy of virtual asset transactions. Last month, hackers compromised five of the validator nodes and used them to steal over $600 million in cryptocurrency. Hackers stole 173,600 Ether, the cryptocurrency from the Ethereum blockchain, and around $25.5 million of USDC stablecoin.

Sky Mavis will use the $150 million in new funds it raised to reimburse users affected by last month’s cryptocurrency theft. The company will also use cash from its balance sheet to reimburse users. To bolster cybersecurity, Sky Mavis is upgrading the Ronin network and performing audits in a process that will take several weeks.

In a related move, Sky Mavis plans to dramatically increase the number of validator nodes powering the Ronin network. The company said today that it plans to add another 12 validator nodes for a total of 21.

In the context of the news, the US venture of Binance, the cryptocurrency exchange that led Sky Mavis’ $150 million funding round, has announced its own funding round.

Binance.US said it has raised over $200 million in seed funding from RRE Ventures, Foundation Capital, Original Capital, VanEck, Circle Ventures and other investors. The investment gives the company a valuation of $4.5 billion. Protocol reported that Binance.US will use the funds to roll out new products, as well as invest in marketing and consumer education initiatives.

Binance.US became profitable three years after its launch. Parent company Binance is said to have the capacity to process 1.4 million transactions per second.

Image: Axie Infinity

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