‘Axie Infinity’ is back open for business following $625 million hack
Thanks to the crypto crash, victims were refunded roughly a third of what they lost.
After a massive $625 million hack, the cryptocurrency play-to-earn game Axie Infinity is once again open for business. The hack took advantage of flaws in the Ronin network, an Ethereum sidechain the game's owner, Sky Mavis, propped up to facilitate faster transactions. Surprisingly, the news today is that Axie Infinity will... continue to use Ronin, which has been revived after a few audits. In a blog post, the company described a new “circuit-breaker” system designed to flag “large, suspicious withdrawals,” withdrawal limits and human reviewers. It also promised players that a new land staking feature — which claims to allow the game's owners of digital land to earn passive income — will be released later this week.
In March, a group of hackers pilfered nearly 173,600 Ethereum and nearly 26 million USDC (worth roughly $26 million) from the game’s network. US officials have since linked the North Korean-backed hacking group Lazarus to the heist. Last week Sky Mavis said it would begin reimbursing the victims of the hack — but didn't account for Ethereum’s drop in value over the past three months, which means that users would only recover about a third of their losses. In all, Sky Mavis is returning $216.5 million in funds to its users.
Moving forward, Axie Infinity players are warned not to send funds directly to Ronin Bridge’s smart contract address. “The Ronin Bridge should only be accessed and used for deposits/withdrawals through the Ronin Bridge UI. Any funds sent directly to the Ronin Bridge’s contract addresses will be permanently lost," wrote the company in its post.
Esports.net recently pointed out a flaw in Axie Infinity’s design — a drop in the number of players causes the value of its in-game currency to plummet. Bloomberg noted earlier this month that the game’s user base has declined by 40 percent since the hack. As of this writing, the value of AXS is at $15.30 (a drop from its high of $160.36 in July 2021) and the value of SLP is at 0.0039 (down from an all-time high of 0.364).
