Axie Infinity Developer Claims It Could Take Two Long Years To Recover Stolen Cryptocurrency Money
During NFT LA, P2E platform Axie Infinity disclosed that it was the victim of an exploit that led to the loss of more than $600 million in cryptocurrency – this is the largest theft of funds in the crypto industry.
Axie Infinity has already been able to raise a considerable amount from investors in order to return the money to some of the affected users. However, the platform knows it has a long way to go to recover at least some of the stolen amount.
Last Thursday, Sky Mavis COO Alexander Larsen spoke with Bloomberg about the situation facing Axie Infinity. He explained that refunds can be a lengthy process.
“We anticipate that some funds will be returned within the next two years. Two years for Axie is a good time for us to get more information. We are here to play the long game,” Larsen said.
Sky Mavis is now working with law enforcement to trace the stolen tokens, but so far the company has not provided any information about the investigation. The refund will be a huge boost for the company, given that it had to spend its own $450 million to make amends to all those affected.
However, based on the examples of other platform hack investigations, it can be concluded that the chances of a refund are very small. ETH was the main target of the theft, and its blockchain data shows that part of the stolen amount was moved to the Ethereum mixer – Tornado Cash.
Axie Infinity will not be able to return the entire stolen amount
Sky Mavis is no longer counting on the return of the full amount stolen and hopes to return at least some of it. According to Merkle Science lead researcher Rishav Rai, the proceeds from major crypto-hacks like these rarely come back; but liquidating stolen assets is also a difficult task for hackers.
Crypto mixers such as Tornado Cash are not designed for this amount of cash, and it is much easier for specialists to detect any movement of large amounts of cryptocurrency between wallets or on a centralized exchange. So it’s not surprising that the last time someone stole that much money, the victims of the hack got most of the money back.
While Sky Mavis is making plans for a refund, many users are leaving the platform not only because of the hack, but also because of the decrease in the platform’s gaming rewards. This number of crypto platform hacks shows their security vulnerabilities – it resulted in the loss of more than $1 billion of funds in the first quarter of 2022.
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