Sky Mavis will reimburse around $216.5 million after the price of Ethereum tumbled.

Sky Mavis, the developer of blockchain game Axie Infinity, says it will start reimbursing the victims of a $617 million hack that took place earlier this year. The attackers took $25.5 million in USDC (a stablecoin that’s pegged to the value of the US dollar) and 173,600 ether, which was worth around $591.2 million at the time. The FBI claimed North Korean state-backed hacker groups were behind the attack.

Impacted Axie Infinity players will be able to withdraw one ether token for each one they lost in the hack, Sky Mavis told Bloomberg (the company didn't mention a USDC reimbursement). However, as with other cryptocurrencies, the value of Ethereum has plummeted since the attack in March.

Because of that, Sky Mavis will return around $216.5 million to users. It's possible that the price of Ethereum will rise again, but as things stand, affected users will get back around a third of what they lost.

In April, Sky Mavis raised $150 million in funding to help it pay back the victims. The developer plans to reimburse affected users on June 28th, when it restarts the Ronin software bridge that the hackers targeted.

Axie Infinity is widely considered the most popular play-to-earn game. Players collect and mint NFTs representing creatures that battle each other, Pokémon-style. These NFTs can be sold to other players, with Sky Mavis charging a transaction fee. By February, Axie Infinity had facilitated $4 billion in NFT sales.

However, the NFT market has all but bottomed out, which has had a significant impact on Axie Infinity. For one thing, according to Bloomberg, the daily active user count dropped from 2.7 million in November to a quarter of that by the end of May.

Source:
courtesy of ENGADGET

by Kris Holt

If you have any stories or news that you would like to share with the global online community, please feel free to share it with us by contacting us directly at [email protected]