The world’s largest cryptocurrency exchange Binance is leading investors’ contribution to a bailout of victims involved in a $615 million digital coin theft, according to the company targeted in the heist. The company Sky Mavis based in Vietnam, which runs the game Axie Infinity, disclosed last week it had been hit by one of the largest crypto heists on record, resulting in users unable to withdraw their money from the game. Trung Nguyen, The Ceo of Sky Mavis, said, “Sky Mavis is committed to reimbursing all of our users’ lost funds and implementing rigorous internal security measures to prevent future attacks.” The company would now reimburse the lost money through a combination of its balance sheet funds and $150 million raised by investors, including cryptocurrency exchange Binance and Venture capital firm a16z.
Binance CEO Changpeng Zhao said, “we strongly believe Sky Mavis will bring a lot of value and growth for the larger industry and we believe it’s necessary to support them as they work hard to resolve the recent incident.” Binance and Sky Mavis did not figure out how much of the $150 million Binance would provide. Sky Mavis’s game, Axie Infinity, allows its 2.2 million players to buy and trade in-game assets in the form of NFTs, which they compete against each other to earn crypto tokens. The part of the network that was hacked, a blockchain “bridge” called Ronin, which allows users to move funds in and out of the game, will reopen after a security upgrade and audits that “can take several weeks”, Sky Mavis said. The “funding round” will allow users to withdraw and deposit their money, the company said.