Axie Infinity’s Sky Mavis has announced that it will compensate gamers who lost their funds when hackers looted $600 million from the Ronin sidechain.
The hackers violated a security flaw in a bridge that enables users to convert tokens and took 176,000 ether and 25.5 million worth of USDC in two transactions.
The development team at Ronin reveals that the security breach occurred on March 23 but was discovered six days later.
Sky Mavis COO, Aleksander Leonard Larsen, notes in a text that the reimbursement will be availed as soon as possible, and a solution to the vulnerability was underway.
Larsen adds that the stolen assets were taken from the deposits on players and speculators and the Axie infinity treasury. The company has so far ruled out insider dealings in the act.
AXS token dropped 11% following the announcement before bouncing back. The token is down 5.8%, while Ronin’s RON has shed off 20%.