Sky Mavis did not immediately respond to CNN’s request for comment on the investigations.The latest cryptocurrency hack has targeted a gaming-focused blockchain network, on which the popular video game Axie Infinity is based. The company told Reuters it is “both leading and investing in the future technologies and legislation that will set the crypto industry on the road to becoming a well-regulated, secure industry.” In June, the company was prohibited from undertaking any regulated activity in the UK without the prior written consent of the Financial Conduct Authority, a financial regulatory authority. A Reuters report in January alleged that the company has weak money-laundering checks. Securities and Exchange Commission and the Commodity Futures Trading Commission. The company is also under several federal investigations, including from the U.S. Critics say the company’s position as both trading platform and active investor is a conflict of interest. Acting as both crypto exchange and crypto venture capital fund, the company has become a powerful force in the decentralized finance space. In an exclusive interview after the hack, Zirlin told CNN that he could not commit to a timeline to reimburse users, saying, “There’s no guarantees in crypto…but we’ll do our best to figure it out.”īinance’s cash infusion into Sky Mavis comes at a precipitous time for the crypto giant.īinance is the world’s largest cryptocurrency exchange, although its core trading platform is prohibited from operating within the United States. Last year, an anonymous hacker stole roughly $600 million in cryptocurrency from Poly Network, a decentralized finance network, in what was called the largest crypto heist in history. The breach is one of the largest known crypto hacks. The company announced the hack last week on stage at the NFT LA conference, with Sky Mavis’ co-founder Jeff “Jiho” Zirlin telling the crowd that “The Ronin network been exploited for 173,000 and around 25 million dollars in USDC.” USDC is a so-called stablecoin whose value is pegged to the US dollar. The game’s Ronin Network suffered the hack on March 23, but Sky Mavis says it only discovered what happened a week later. The company’s last valuation pegged it at worth nearly $3 billion. The game resembles Pokemon, with cartoon creatures called “Axies” that players can collect and use to battle each other. If within two years the funds are not recovered, the company’s DAO (decentralized autonomous organization) will vote on “the next steps for the treasury,” said Moore.Īccording to the company, the Ronin Network - Sky Mavis’ proprietary trading network - will re-open after security upgrades and audits, which could take “several weeks.”Īxie Infinity is one of the most popular “play-to-earn” games, a genre in which players can earn crypto tokens. The cash infusion combined with Sky Mavis’ existing funds will be used to make users whole, she said, while the company’s treasury will remain “undercollateralized” while the company works with law enforcement. Kalie Moore, a spokesperson for Sky Mavis, told CNN that $400 million was stolen from users, while the rest was taken from the company’s treasury.
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