The CEO Of Sky Mavis Shifted Money Before Revealing The $540 Million Hack

The CEO Of Sky Mavis Shifted Money Before Revealing The $540 Million Hack!

Recently, it unveiled that Trung Nguyen, CEO, and co-founder of Sky Mavis, had shifted around 3 Million USD before Axie infinity disclosed their 540 Million USD hack. According to Bloomberg, The fund’s transfer happened before publicly announcing the hack. After the attack, the company did this to protect its money.

In March 2022, Axie Infinity, a play-to-earn game, was hacked. It was one of the largest hacks that happened in the Blockchain Industry. 

The CEO Of Sky Mavis Shifted Money Before Revealing The $540 Million Hack

The user known as Asobs was able to follow Nguyen’s fund transfer activities using the axie infinity linked wallet. Asobs examined several wallets that he believes to belong to Axie Infinity employees because Sky Mavis had sent the majority of the addresses $AXS as payment.

The CEO Of Sky Mavis Shifted Money Before Revealing The $540 Million Hack

According to Asobs’s Analysis, all the funds were moved to centralized exchanges from the Ronin Chain. The fund transfer transactions happened 3-4 hours before they disclosed the attack to its user.  As per the research, only the identity of the CEO of Sky Mavis was discovered. 

Per the tweet by Trung Nguyen, the fund transfer happened after a complete discussion with Binance ( A cryptocurrency Exchange). Because people in the community were scared, this was done to stop any short-selling.

The 540 Million USD attack took place in March, but it took a while for it to be found. The attackers accessed the five validator keys out of nine on the Ronin sidechain. The attackers used the keys to make a transaction to drain funds through a bridge between the Ethereum main network and the Ronin Network. 

The Block asserts that an axie Infinity was the target of an assault using a fake job advert. Soon After the attack happened, Sky Mavis went through different rounds of fund raises and promised their users to reimburse their funds. As per the reports, Sky Mavis raised approximately 150 million USD. The Ronin Bridge is all working now after they made reimbursements to all the users. 

Key Takeaways

  • Ronin Network, an Ethereum sidechain, had seen a major crypto hack when the most famous game, Axie Infinity, had lost its 540 million USD worth of assets.
  • The CEO had transferred three million USD tokens before revealing the attack, according to the insider trader, who made this discovery. However, the CEO claims this to be false and completely baseless.

Sky Mavis still hopes to recover the funds back. According to the US treasury, funds were allegedly stolen by Lazarus ( a North Korean Hacking group).

Axie Infinity is one of the most successful crypto games with more than 4 Billion USD trading volume and millions of users. However, After the hack, it was majorly affected and began to collapse in late March. But developers and management team are trying their best to revive the monster battling game. 

At the time of writing this article, the AXS token rose by 7% in value at the current price of 16 USD. Although, this is approximately down 90 percent from its All time high(ATH). Moreover, the game’s SLP token’s value dropped to 0.004 USD ( 99% lower than ATH).

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