Axie Infinity will reimburse the victims of the Ronin Bridge and reopen the bridge

The owners of Axie Infinity (Sky Mavis) have announced a compensation plan for the victims of the Ronin Bridge hack. Sky Mavis also stated that he will reopen the bridge next Tuesday. Three months ago, hackers stole $ 620 million worth of cryptocurrency from the Ronin Bridge. Most of the amount represents 17.600 Ether (ETH) and USDC 25,5 million.

A Bloomberg report on Friday stated that users will receive an ETH for every previous ETH they owned prior to the hacking incident once the bridge is reopened. Two months ago, Sky Mavis raised nearly $ 150 million from a series of fundraisers to compensate victims of hacking.

Binance was a major contributor to that series of investments. Other investors in that round included Accel, Paradigm, Dialectic, 16z, and Animoca Brands.

After the breach, the hacker transferred the stolen funds to multiple accounts. Their businesses could not be traced because they used Tornado Cash to hide the transfer of funds. Tornado Cash is a non-custodial privacy solution built on Ethereum.

Hacking and the cryptocurrency industry

Hacking incidents remained a thorny issue for the DeFi industry. Several figures show that hacking incidents in the DeFi space have almost doubled this year compared to last year. A data from April 2022 from crypto-security firm Immunefi says that investors lost more than $ 1,22 billion to hackers in the first quarter of this year.

This is eight times the $ 154 million lost in the same period last year. Hackers stole over $ 1,22 billion worth of digital assets from various DeFi projects this year. Additionally, a Federal Trade Commission report released on June 3, 2022, stated that over 46.000 people have lost more than $ 1 billion to cryptocurrency scams since January 2021.

Ronin's hack was noteworthy for the huge sum involved. It was recorded that the amount was one of the largest ever stolen in a single hacking incident by any DeFi project.

The future

The hack has created a great deal of fear in the cryptocurrency industry. However, the Ronin blockchain overcame the incident by continuing its business a few days later. Earlier this month, the blockchain surpassed $ 4 billion in total NFT sales volume.

In doing so, it ranked second to Ethereum in terms of all-time NFT sales volume. Its all-time NFT sales volume is now higher than other popular NFT networks such as Solana (SOL), polygon (MATIC), Wax (WAXP) and flow (FLOW). It is one of the most popular digital art networks in the industry. Hacking incidents, security breaches, and hand strikes are nothing new to the cryptocurrency industry.

There is no day when there is no news about one hacking incident or another. On June 24, several media outlets confirmed the hacking incident that took place on the Horizon bridge of the Harmony layer-1 blockchain. Hackers stole $ 100 million worth of altcoins and converted everything into ether.