Theft is one of the largest in the crypto sector’s 13-year history
“The breach happened due to social engineering, not technical flaw,” said Aleksander Larsen, operating chief and co-founder of Sky Mavis.
It was the second-largest crypto hack ever, according to analytics firm Elliptic. The assets were worth about $540 million on the date of the theft and are worth about $615 million now.
Sky Mavis shared a link that shows the stolen funds are still in the hacker’s wallet. The firm said it is working with the analytics firm Chainalysis to track the stolen funds. On Tuesday afternoon, the price of ether wasnt being affected by the news. It was up 1.7% on Tuesday at $3,408.
“We are working directly with various government agencies to ensure the criminals get brought to justice,” Ronin said in the statement.
The hack comes as a blow to the crypto industry as it moves into the mainstream with Wall Street buy-in, celebrity endorsers and high-profile Super Bowl ads. The federal government is still weighing further regulations of digital assets.
“Axie Infinity,” launched in 2018, is part of a small but fast-growing number of so-called play-to-earn games. Also known as blockchain games, they are largely center on the buying, trading and selling of virtual assets backed by nonfungible tokens, or NFTs. The games are considered an early foray into the metaverse, a more immersive future version of the internet where people are expected to work, learn and be entertained.
“Axie Infinity” had more than 1.7 million daily users in February, according to Sky Mavis. In it players collect digital pets called Axies that they use to compete in battles. They can sell and trade the creatures for digital currency. Some Axies are worth more than others.
Some industry executives have raised concerns about the security and value of NFTs in games, such as Microsoft Corp. gaming chief Phil Spencer and the head of “Fortnite” maker Epic Games Inc., Tim Sweeney. Many gamers are also skeptical of the trend and worry that earn-to-play merely represents a cash-grab opportunity for developers.
Credit: www.Businesshala.com /