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Hackers Compromise Sky Mavis Co-founder’s Wallet Draining Assets Worth $9.5M

On Thursday, the co-founder of the Sky, Mavis Jeffrey Zirlin, suffered a malicious attack leading to the loss of a measurable amount of funds. The executive stated that the hacking incident occurred on Asian morning hours February 23. 

In his X post, the official lamented that the hackers gained unauthorized access to his two crypto wallets on the Ronin, robbing assets worth nearly $9.5 million of Ethereum (ETH). The Friday tweet grabbed the attention of a renowned security analytics firm to assess the cause and the damages of the attack.

Sky Mavis Co-Founder Account Hacked 

In a subsequent tweet, the PeckShield team noted that around 3250 Ethers valued at $9.5 million were stolen from a whale wallet on the Ronin network. The funds were later channeled to Ethereum accounts through Tornado Cash Mixer.

Based on the Peckshield report, the analyst argued that the hackers preferred the Tornado Cash Mixers due to their complexity in tracing the movement of funds. Unlike other wallets the Tornado Cash Mixer has anonymity features that hide the source of funds.

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Sky Mavis’ boss argued that the hacking incident had minimal impact on the operation of the Ronin network. He added that the attack did not interfere with his personal accounts. 

In his tweet, the executive regretted that the lousy actor had leaked private keys for the compromised accounts. Zirlin assured the crypto community that the attack would not interfere with Sky Mavis operations. 

The executive confessed that the gaming company had taken preventive measures across multiple chains affected by the attack. He appreciated the community’s solicitude and assured them he was about to overcome the challenge.

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Damages Caused by Sky Mavis Hacking Incident

Elsewhere, a Sky Mavis spokesperson confirmed further details concerning the attack. The representative argued that the security breach affected Zirlin wallets with personal addresses.

On X, the troubled investors demanded to know whether the attack compromised the security of Sky Mavis’ supported blockchain network. 

For years, Sky Mavis attained a substantial customer base for offering end-to-end solutions to crypto enthusiasts. The Sky Mavis team gained popularity after launching a unique blockchain game dubbed Axie Infinity

In response to the multiple questions from X users, Sky Mavis co-founder Aleksander “Psycheout” Larsen reiterated that the attack has minimal impact on the Ronin network and customers’ funds on the Sky Mavis platform were safe.

He explained that the hackers did not compromise the Ronin network. The executive argued that the hacking incident only affected Zirlin’s wallets and had nothing to do with the Ethereum bridge or the Ronin network. 

He assured customers that the Ronin network has adequate security measures that cannot be compromised. Larsen confessed that the Sky Mavis team has heavily invested in enhancing the security of the bridges through regular audits and assessments. 

Security Measures to Address Crypto Hack

The executive stated that the Ronin network was designed to pause if the transaction activities surpassed the maximum limit.

Citing the 2022 hacking incident that impacted the loss of crypto assets worth over $622 million, the executive reaffirmed that Sky Mavis has focused on strengthening the security of the bridges. 

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A review of an earlier report demonstrated that hackers compromised the Ronin Ethereum bridge to drain assets worth $622 million. The Ronin attack was among the largest in the decentralized finance (DeFi) sector.

Based on the damages caused by 2022 Ronin attack, the probing team suspected that the malicious was conducted by the North Korean hackers Lazarus Group. The probing team noted that the hackers took advantage of a vulnerability of the Ronin Ethereum gaming sidechain. 

Reportedly, the multimillion-dollar attack forced law enforcement units to collaborate with blockchain analytics firms to probe the matter. After a thorough investigation, the authorities recovered approximately $30 million of crypto linked to the Ronin attack. In June 2022, the Sky Mavis team restored operation on the Ronin bridge and refunded the hack victims


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Kimberly Crain

Kimberly Crain is a seasoned crypto trader and writer, offering valuable insights into the digital asset market. With expertise in trading strategies and a passion for blockchain technology, her concise and informative articles empower readers to navigate the evolving world of cryptocurrencies.

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