Axie Infinity Hack: Insider Trading in the Land of NFTs?

Omniscient blockchain – The March 30, 2022Sky Mavis, the parent company of Axie Infinity and its Ronin exchange, was almost relieved 173,000 ether and USDC 25.4 million. So aided by many big players in the cryptocurrency industry like Binance, the flayed company, has gradually managed to get their heads out of the water. So we thought this story was over and things were back … almost – like before. That’s not counting the revelations from our Bloomberg colleagues last night.

$ 3 million withdrawn on Binance before the hack was announced

The CEO of Axie Infinity has reportedly moved $ 3 million in AXS, a cryptocurrency native to the Ronin ecosystem, before the company revealed the Sky Mavis hack. Recall that the hacking of the company took place on March 22, 2022. However, the attack was reportedly discovered only seven days later. At the time, Axie Infinity was freezing its users’ accounts to protect them, but also to prevent funds from flowing out of Ronin and his DEX Katana.

However, Bloomberg supported the analysis we chain, on the blockchain, of a youtuber, shows that in the hours following the announcement of the freeze of Katana’s portfolios, Trung NguyenCEO and co-founder of Axie Infinity would have completed a transaction of 3 million dollars in AXS.

>> Forget about scams. You prefer peace of mind by buying Bitcoin with Bitstack … and earn 5 € of BTC with the code JDC5 (commercial link) <

Sky Mavis and its CEO defend themselves

For its part, the Sky Mavis company has confirmed the membership of the wallet Trung N’Guyen. Kalie Moore, spokesperson for Sky Mavis, explains that the person concerned would be working for consolidate the finances of the company during the crisis linked to the attack. Move these funds thereby providing liquidity to users by restoring access to funds through Binance.

“At the time, we (Sky Mavis) understood that our position and options would be better the more AXS we had on Binance. This would give us the flexibility to pursue different options to obtain the necessary loans / capital (…) The founding team chose to transfer it from this portfolio to ensure that short sellers, who follow the official Axie wallets, would not be able to obtain before the news “.

N Guyen supported the spokesperson’s comments on his social networks in a thread, a succession of several tweets:

Tweet by Axie Infinity co-founder Trung N’Guyen – Source: Twitter

“I personally transferred nearly $ 3 million to Binance before the Ronin Bridge closed. This was part of the plan to be able to provide liquidity so that Ronin users could withdraw AXS, SLP and wETH as soon as possible. “

While Sky Mavis claims to have protected its funds, this twist sows doubts and tarnishes the reputation of the newly grown game for earning giant. The unprecedented hack experienced by Axie Infinity threatened the collapse of the ecosystem. This affair will continue to run the ink. The latter also puts a thrill, while the company has managed to do it reborn from the ashes.

Secure your cryptocurrencies in your wallet. To buy Bitcoin without even realizing it, register on Bitstack… and earn 5 € of BTC for free thanks to the JDC5 code (commercial link)!

Leave a Comment