Axie Infinity Developers ‘Made Some Trade-offs’ That Enabled $625M Ronin Breach

The game’s creator, Sky Mavis, has raised $150 million to reimburse users affected by the theft


Blockworks Exclusive art by axel rangel


key takeaways

  • Hackers breached the Ronin Network for over $625 million on March 29
  • On Wednesday, Binance said that it has fully resumed withdrawals and deposits on the Ronin Network

A week after one of the largest cryptocurrency hacks to date — a $625 million breach on the Ronin Network bridge — Sky Mavis, the company that built it, acknowledged that its haste to grow the platform’s user base may have caused it to cut corners on security.

The Ronin Network is an Ethereum-linked sidechain used for blockchain game Axie Infinity. The bridge connecting it to the Ethereum mainnet was exploited, and an attacker drained 25.5 million USDC and 173,600 ETH on March 29, totaling about $625 million.

“While racing for mainstream adoption, we made some trade-offs that ended up leaving us vulnerable to this sort of attack,” Axie Infinity said in a blogpost. “It’s a lesson that we’ve learned the hard way.”

Sky Mavis announced a $150 million raise, led by Binance, to reimburse affected users. Other contributors to the round include Paradigm, Animoca Brands, Dialectic, Accel and Andreesen Horowitz.

“Sky Mavis is committed to reimbursing all of our users’ lost funds and implementing rigorous internal security measures to prevent future attacks,” Trung Nguyen, chief executive of Sky Mavis, said in the Wednesday statement.

On Wednesday, Binance said that it has fully resumed withdrawals and deposits on the Ronin Network after suspending them last week.

“In order for the global ecosystem to continue thriving and maturing, it is imperative that we work together, especially when it comes to security, which is our strong suit,” Changpeng “CZ” Zhao, chief executive of Binance, said in a statement.

Of the stolen ether, more than 170,000 ETH remains in the attacker’s wallet, and thousands of ETH have been transferred to Tornado Cash, a privacy tool for Ethereum.

“Sky Mavis’ Ronin chain currently consists of 9 validator nodes. In order to recognize a Deposit event or a Withdrawal event, five out of the nine validator signatures are needed,” per the breach’s announcement. “The attacker managed to get control over Sky Mavis’s four Ronin Validators and a third-party validator run by Axie DAO.”

The Ronin Network bridge will reopen, Sky Mavis said, once it has undergone significant audits and security upgrades, which can take several weeks.

Among the security improvements, Sky Mavis will increase the validator group to 21 validators within the next three months, which will be split among various stakeholders including partners, community members and long-term allies.

Don’t miss the next big story – join our free daily newsletter.


Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Top Icon.png


Osmosis thrived in H2 2023 on the back of increased DeFi activity deriving from recently launched Cosmos-related projects and better market conditions. With new value accrual mechanisms for the native token, Osmosis is well-positioned to continue its strong performance in 2024.



Do Kwon may miss the start of the March 25 trial in the SEC’s case against the former executive and Terraform Labs


Riot Platforms bought 31,500 more mining machines while CleanSpark has begun operating in Mississippi


Dencun was activated on all testnets, a blog post Tuesday said


Hut 8 also announced it broke ground on a Texas mining site


Uniswap aims to become a “complete platform for swapping” following its latest product releases


Continued demand for bitcoin ETFs coupled with greater demand for bitcoin from exchanges is contributing to price moves, analysts say