Binance-led funding round raises $150 million for Sky Mavis' Ronin Bridge refund

A recent attack on Sky Mavis' Ethereum sidechain, the Ronin network, drained $622 million from customers.

Binance-led funding round raises $150 million for Sky Mavis' Ronin Bridge refund

A recent attack on Sky Mavis' Ethereum sidechain, the Ronin network, drained $622 million from customers. The Binance-led fundraising round raised $150 million for the purpose of reimbursing victims of the recent attack.

Along with Animoca, the maker of the popular crypto game The Sandbox, a16z and Accel are also part of the funding round. In addition, crypto investment firms Paradigm and Dialectic participated.

Users of the Ronin Network can withdraw and deposit money freely using the funding and pool provided by Sky Mavis and Axie Infinity from their balance sheets.

In order for the Ronin bridge to become fully operational, it will undergo an audit and security update.

As Sky Mavis cooperates with law enforcement to recover the stolen funds from Axie's DAO treasury, the funds will remain under-collateralized.

After two years, if the funds have not been recovered, the DAO will decide what the next steps will be.

How did the Ronin attack happen?

It took place on March 23 but was only discovered on March 29. The hack is one of the largest in crypto history.

"Hacked private keys" were used to forge two false withdrawals, according to a Ronin blog post.

Hackers gained access to Sky Mavis' Ethereum sidechain, the Ronin bridge, and withdrew 173,600 Ethereum and 25.5 million USDC.

Ronin hackers transferred $7 million in stolen funds onto a Tornado wallet on Monday.

According to a Sky Mavis press release, the hack was "socially engineered" and the problem was a set of small validators. The company expects to increase the number of validators from five to twenty-one with the new funding within three months.

Axie community stakeholders will act as validators, and together they will manage an open-source codebase.