Sky Mavis, the company behind the Axie Infinity blockchain project, has revealed the details of the attack to the sidechain Ronin. The company representatives have also promised to compensate the losses of affected users, who have lost $625 million in total. The Axie Infinity team has reported that the hackers used social engineering to gain unauthorized access to the assets:
"We are certain that this was an external breach. All evidence points to this attack being socially engineered, rather than a technical flaw."
Sky Mavis has also said the project team is working with Chainalysis specialists to trace the stolen funds. In addition, Crowdstrike is conducting a technical audit of Ronin to ensure there are no vulnerabilities.
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Axie Infinity and Sky Mavis COO Alekxander Larsen has said the attackers carried out the attack in December. To further decentralize the sidechain, the team will add "several" new validators:
"We are committed to ensuring that all of the drained funds are recovered or reimbursed, and we are continuing conversations with our stakeholders to determine the best course of action."
As a result of the Ronin attack last March 23, hackers stole about $625 million in crypto assets from the sidechain. This was the largest theft in the history of the DeFi industry.