Axie Infinity Plans to Reimburse Players After $625M Hack

Ethereum

Summary:

  • The parent company of Axie Infinity is committed to reimbursing players affected by the $625 million hack
  • 173.6k Ethereum and 25.5 million in USD Coin (USDC) were stolen from the Ronin bridge
  • The Ronin Network exploit is the largest DeFi hack to date at $625 million
  • The price of AXS and RON have been negatively affected by the hack

The company behind the Axie Infinity crypto game, Sky Mavis, has announced a ‘full commitment’ to reimbursing funds of players affected by the recent $625 million hack on the Ronin Network.

The pledge to make whole what was lost was made by Sky Mavis’ Chief Operating Officer, Aleksander Leonard Larsen, during a Bloomberg interview where he said:

We are fully committed to reimbursing our players as soon as possible…We’re still working on a solution, that is an ongoing discussion.

AXS and RON Dropped by 11.54% and 30%

As a result of the hack, the Axie Infinity (AXS) token and Ronin (RON) coin experienced significant losses in the crypto markets.

Before the hack was discovered and announced, AXS and RON were trading at roughly $70 and $2.25 respectively. When news broke of the hack AXS dropped to a local low of $61.92 and RON to $1.582. This translates to an 11.54% drop by Axie Infinity (AXS) and a 30% drop by Ronin.

At the time of writing, AXS has risen to $64.86 and RON to $1.80.

However, these values of AXS and RON are still 7.34% and 20% lower than before the exploit was discovered.

Ronin Network’s Hack is the Largest to Date in USD Value

Also worth mentioning is that the hackers of the Ronin bridge that is at the core of the Axie Infinity metaverse stole 173.6k Ethereum and 25.5 million in USDC. This amount translates to $625 million using Ethereum’s value of roughly $3,400 when the hack was identified.

This USD value of the Ronin Network hack makes it the largest DeFi heist to date when compared with the following:

  • Poly Network’s $610 million hack – on August 10th, 2021, funds were drained from the three chains on the Poly Network: Ethereum, BSC and Polygon
  • Wormhole’s $325 million hack – on February 2nd, 2022, roughly 120k WETH was exploited on the Solana bridge
  • Compound Finance hack of $147 million – on September 30th, 2021, the protocol had a bug that let borrowers claim more COMP without the corresponding collateral

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